BH3 Management pays $50M for 52 unsold condo units in Hell’s Kitchen, through bankruptcy

BH3 Management through the entity Dof II-Bloom Resi Owner LLC paid $50 million to Xin Development Group through the entity Hudson 888 Owner LLC for 52 unsold condominium units at the Bloom on 45th at 500 West 45th Street in Hell’s Kitchen, Manhattan. The expected use is cash flowing. Five commercial condo units were not part of this sale.

The sale was part of a bankruptcy proceeding that Xin Development initiated in January 2024 to block the BH3 foreclosure.

Xin Development Group filed to place its 92-unit condominium project Bloom on 45th at 500 West 45th Street in Hell’s Kitchen, Manhattan, which it claims is worth $123 million, into bankruptcy protection on January 7, 2024, under pressure from its lender BH3 Management which owns $79.7 million in senior and mezzanine debt. The signatory for the petition was Sheng Zhang, Xin Development CEO.

Case 24-10021

Bloom on Forty-Fifth affidavit pdf

Xin Development Group, a division of the China-based Xinyuan Real Estate, sued the debt holder BH3 Management in November 2023 at the 92-unit condominium project, as the parties battled over a forbearance agreement. The developer filed the bankruptcy through the entities Hudson 888 Owner LLC

In 2021, Xin Development cut the senior debt on the project, which was completed in 2020.

According to the bankruptcy petition, 60 units of the 92 units are unsold. Xinyuan also owns the five commercial condo units which are “98%” leased to tenants including Target, which together pay $3.4 million in annual rent.

The commercial units are valued at about $53 million, while the unsold residential units are valued at $70 million, leaving an estimated $40.3 million in equity, with the senior debt as of late November 2023 totaling $58.9 million and the mezzanine debt at $20.8 million, resulting in the total debt at $79.7 million.

The deal closed on October 15, 2024 and was recorded on October 24, 2024. The 52 properties have 73,677 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $678 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)

Development

There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot. On the tax lot, the most recent condominium plan was filed by HUDSON 888 OWNER LLC to create 92 residential units in a building at 505 West 44 Street in Hell’s Kitchen, Manhattan, called Bloom On Forty-Fifth (F/K/A Residences On Tenth Avenue that has a $146.5 million sellout, according to an May 04, 2018 submission to the New York State Attorney General. The principal of the sponsor, HUDSON 888 OWNER LLC, was Jian Zhang.

The block

There are no active new building construction projects on this tax block.

All properties are specialty.

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