Xinyuan Affiliate Secures $108M Construction Loan For Hell's Kitchen Condo Project

615 Tenth ave. rendering
Courtesy: Eastern Consolidated Rendering of 615 10th Ave. in Midtown West

A subsidiary of Chinese development giant Xinyuan has secured a $108M construction loan from Bank of the Ozarks for a seven-story condominium and ground-floor retail project in Hell's Kitchen.

When finished, the development, which is under construction, will have 72K SF of residential condo space, distributed among 82 units from the second to seventh floors, and 36K SF of retail space, anchored by a 29K SF Target on the ground floor and lower level. The building will take up an entire western block front between West 44th and 45th streets.

According to the terms of the loan, brokered by Eastern Consolidated's Adam Hakim and James Murad, Bank of the Ozarks could seize the property in a default. Last year, XIN Development secured a $27M bridge loan with the Arkansas-based bank for the property, purchased for $57M, which previously housed a gas station and convenience store.

XIN Development president John Liang attributed the firm's success in securing the loan with the success of the Oosten, a Williamsburg, Brooklyn, development and the company's first New York-area project. The 489K SF building at 429 Kent Ave. was the second-best-selling new New York condo building in 2016. More than 75% of the Oosten's 216 condos have been sold at an asking price between $1,300 and $1,500/SF.

“Securing a construction loan of this caliber in the current financing environment for only our second project in the New York market is a testament to the quality and success of our South Williamsburg project, the Oosten,” Liang said in a statement.

Liang told the Commercial Observer that 25% to 30% of XIN's condo buyers come from China.

Xinyuan is the only publicly traded Chinese developer listed on the New York Stock Exchange. In China, the company has partnered with developer Sam Zell, who is one of the company's major investors.

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