Two Chinese banks sue to foreclose on $64M HNA allegedly owes at Cassa Hotel

Two Chinese banks filed a lawsuit yesterday to foreclose on a 2016 loan made to Chinese multinational HNA Group. The banks are seeking $64 million in principal and interest secured by the Cassa Hotel NY 45th commercial condo units at 70 West 45th Street in Midtown West.

This is the third largest pre-foreclosure suit filed since September 2020 on a first mortgage loan in New York City.

The banks, Chang Hwa Commercial Bank and Hua Nan Commercial Bank, lent $63 million to HNA in 2016, which HNA used to pay off a Deutsche Bank loan. HNA bought the three commercial condos comprising the hotel in 2012. The property is a hotel and residential condo building that Assa Properties developed.

HNA obtained control of the condos through a 2012 deed transfer which did not trigger any transfer taxes, because the buyer and seller were related entities, and Salim Assa signed for both.

Court LINK

By Adam Pincus