Xin Development Lands $33M Bridge Loan to Right 615 10th Avenue
By Mark Hallum December 9, 2024 2:51 pm
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Xin Development Group International is getting things on an even keel as it exits bankruptcy and refinances a Hell’s Kitchen retail property, Commercial Observer has learned.
The developer landed a $32.5 million bridge loan from Avant Capital for the retail portion of 615 10th Avenue — leased to Target and Bond Vet — at base of the seven-story, 92-unit residential condominium building, according EXP Realty NYC’s Steven Weiss, who arranged the financing.
The bridge loan comes after its loan was sold to BH3 Management, which took over the 51 unsold residential condos in October through a court battle.
“Now, the distress is out. … They have a new loan that’s better leveraged, that’s sized to be taken out as a bridge to permanent financing,” Weiss told CO. “This gives them an opportunity to come out of bankruptcy with a loan, which is very, very difficult. I got them a lender who is bankruptcy friendly.”
The U.S. division of Chinese development firm Xinyuan Real Estate started building the mixed-use retail and condo property, with an alternative address of 500 West 45th Street and marketed as Bloom on Forty-Fifth, in 2016, securing a $108 million construction loan the following year.
But the worst of times would follow. Upon delivering the condos to market during the COVID pandemic, Xin fell into bankruptcy, and its loan was sold to BH3.
Representatives for Xin and BH3 did not immediately respond to requests for comment.
Avant’s Bernard Wolff worked on the deal and said the distress financing comes with a higher price tag, but the lender is certain that the building’s retail component indicates the likelihood of a profitable outcome for the borrower, which will eventually move to a commercial mortgage-backed securities loan.
“There’s a lot more effort that goes into closing a loan like this, there’s a lot more complexity, more nuance, and it takes a lot more time to close a transaction like this, from an underwriting standpoint, from a legal standpoint,” Wolff said. “If they file for bankruptcy once on their current lender, they obviously have broken the forbidden rule, right? If they did it once, theoretically, they’re inclined to do it again.”
Update: This story has been updated to clarify that the bridge loan was for the retail condominium in the property.
Mark Hallum can be reached at mhallum@commercialobserver.com.
