Lender BH3 Takes Over Xin Development’s Unsold Condo Units at 500 West 45th Street
By Amanda Schiavo October 24, 2024 4:24 pm
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Embattled Chinese developer Xin Development Group International has turned over more than 50 unsold condominium units at 500 West 45th Street, valued at $50 million, to lender BH3 Management, according to city records and bankruptcy documents.
The transfer of the condo units caps off a protracted legal battle between Xin and BH3 over the 92-unit luxury Hell’s Kitchen condo project, known as Bloom on Forty-Fifth.
“An affiliate of BH3 Management has taken ownership of the remaining condominium units at the Bloom on Forty-Fifth,” a spokesperson for BH3 told Commercial Observer via email. “Now that BH3 has taken ownership, we are finalizing plans to launch a new sales and marketing campaign for the 51 units that remain available for sale.”
Earlier this year, Xin attempted to avoid foreclosure on the building — valued by the developer at $132 million — by placing it into bankruptcy protection, PincusCo. reported at the time.
Condo sales at Bloom on Forty-Fifth began in early 2021, when the COVID-19 pandemic was in full swing, and as a result sales did not meet expectations. The interest rate hikes between March 2022 and July 2023 made mortgages more expensive and also hurt sales. As a consequence, only 32 units had been sold when documents were filed in bankruptcy court. Xin valued the 60 unsold condos at $70 million in January, Pincus reported. Another nine units appear to have been sold since then.
Construction of Bloom was completed in 2020. Located near the corner of West 45th Street and 10th Avenue, the building consists of 92 residential condos ranging in size from studios to three-bedrooms.
Xin, a division of Xinyuan Real Estate, sued lender BH3 in November 2023 over Bloom. The documents are sealed and the details of the lawsuit are unclear. However, Pincus noted at the time that when a case is labeled “commercial contract” the issue usually has something to do with the loan terms.
The developer also accused BH3 of being “aggressive” in its foreclosure pursuit on the project, Pincus reported.
Xin could not be reached for comment.
Amanda Schiavo can be reached at aschiavo@commercialobserver.com.
