Former Kuafu partner borrows against $46.7M loan on stalled Siras, Kuafu project in Hudson Yards
An entity affiliated with a former Kuafu Properties partner borrowed an unknown amount against a $46.7 million loan secured by a troubled development project in Hudson Yards controlled by Siras Development, Kuafu Properties and BlackHouse Development.
The entity 462-470 11th Avenue LLC, which has an address at Arris Properties, as borrower signed a loan agreement with the Seychelles-based lender Leading Season Limited, secured by a $46.7 million loan on land owed by Siras, Kuafu and BlackHouse at 462-470 11th Avenue in Hudson Yards. This is a collateral assignment of a loan. The deal closed on September 1, 2020 and was recorded on September 3, 2020.
This assignment comes on the heels of new junior debt added to the project. Siras Development in June 2020 obtained a $3.8 million junior loan from Sean Ludwick of BlackHouse, an early partner on the project who served time in prison crashing his car while intoxicated and killing a friend who was a passenger.
The developers filed plans in 2014 for a 47-floor mixed-use project, but the plans were disapproved in 2015 and have not been refiled. The project has been impacted by internal dissension and criminal charges against BlackHouse principal Sean Ludwick.
The original 2014 loan given by UBS to the developers had a face value of $60.5 million, but an affiliate of Kuafu, 462-470 Eleventh Avenue LLC purchased the loan in 2015 as the partnership devolved into internal disputes, for $46.7 million, according to the Commercial Observer.
In 2015, Kuafu Properties accused Siras Development of not consulting with the firm about major decisions among other alleged problems, according to The Real Deal.
The last time the property sold was June 26, 2014, for $24,300,000.
The signatory for the assigned loan was Tin-Fu Tiffany Tsai, of Arris Properties Group, which is the current process address for the the lender entity that an affiliate of Kuafu created in 2015 to purchase the loan. A former Kuafu partner, Zengliang Denis Shan, left that company in and in 2016 launched Sumi Properties which is now Arris Properties. Leading Season Limited is owned as to 50% by Wang Huimin and 50% by Yao Xiaojun, according to a prospectus.
Over the past five years, there have been 3 NYC Department of Buildings permit applications filed for this parcel valued at more than $20,000. There was one renovation/alteration project (A2) applied for with a total estimated value of $250,000. There have been 2 demolition projects filed over the past five years.
Direct link to Acris document. link
Direct link to the city’s interactive property map, ZOLA. link