Xin Development puts Flushing dev site in bankruptcy to block Maverick-led $41M auction

Xin Development Group International, a division of the China-based Xinyuan Real Estate Co., placed the RKO Keith’s Theater development site at 135-35 Northern Boulevard in Flushing, Queens, in chapter 11 bankruptcy protection yesterday to block an auction set for today through a Maverick Real Estate Partners-led foreclosure case. The judgment lien was set at $41.2 million, according to the notice of sale.

Xinyuan Real Estate’s co-founder Yong Zhang, filed the bankruptcy in the Eastern District of New York, U.S. Bankruptcy Court. Yong Zhang says in the filings that the value of the real estate is at least $90.6 million.

Bankruptcy 1-26-42258-ess LINK

State Court Case 714953/2023 LINK

Maverick Real Estate Partners, which holds the note, lent the developer Xin Development Group International $34.4 million in October 2022. Then just nine months later, Xin was allegedly in default and in July 2023 Maverick initiated the foreclosure process. A prior foreclosure auction set for August 2025 was cancelled.

In April 2025, a group of creditors filed an involuntary bankruptcy against Xinyuan Real Estate under file number 25-10745 in the Southern District of New York. Despite that action, the state court foreclosure auction was not blocked. The new action will halt the foreclosure auction.

According to Yong Zhang’s declaration in the filings, “A foreclosure sale on the Real Property is scheduled for May 8, 2026, at 10:00 a.m. Therefore, to prevent the foreclosure of the Real Property, the Debtor sought Chapter 11 relief in this court… I believe the Real Property is worth at least $90,600,000, pursuant to an appraisal prepared during 2025 and restricted funds held to secure a surety bond equals $2,000,000. Debtor’s liabilities equal the sums owed to the mortgagee (approximately $40,000,000), plus the amounts owed to general unsecured creditors in the amount of $588,340.42.”

The property

The specialty building in Flushing has 80,541 square feet of built space and 20,339 square feet of additional air rights for a total buildable of 100,866 square feet according to a PincusCo analysis of city data. The parcel has frontage of 158 feet and is 278 feet deep with a total lot size of 41,509 square feet. The lot is irregular. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $10.8 million. The most recent loan totaled $34.4 million and was provided by Maverick Real Estate Partners on October 5, 2022.

Prior sales, articles and revenue

This property was sold for $65.8 million on July 29, 2016.

Violations and lawsuits

According to city public data, the property has received $5,000 in ECB penalties and $5,000 in OATH penalties in the last year.

There were no lawsuits or bankruptcies filed against the property for the past 24 months.

The neighborhood

In Flushing, The bulk, or 45 percent of the 37.7 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 20 percent of the space. In sales, Flushing has near average sales volume among other neighborhoods with $737.8 million in sales volume in the last two years and is the 3rd highest in Queens. For development, Flushing has near average amount of major developments among other neighborhoods and is the 4th highest in Queens. It had 3 million square feet of commercial and multi-family construction under development in the last two years, which represents 8 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of five of the 22 commercial properties representing 137,177 square feet of the 259,631 square feet. The largest owner is Bryant Sui, followed by Kin Chau Cheng and then Mei Ping Matsumura. On the tax block, there was one new building construction project filed totaling 96,536 square feet. It is a 96,536 square-foot business (B) building submitted by Orrin Feingold with plans filed December 26, 2018 and it has not been permitted yet.

The owner

The PincusCo database currently indicates that Xinyuan Real Estate Co. owned at least one commercial property in New York City with 80,541 square feet and a city-determined market value of $10 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single specialty property. It is located in Queens.

The surrounding

Within a 400-foot radius of 135-35 Northern Boulevard, PincusCo identified three commercial real estate items of interests occurred over the past 24 months. Of those three items, one was for major renovation including a certificate of occupancy change. It was a permit application filed on April 1, 2026 for the $1 million renovation of 201,840-square-foot 70 building with 310 residential units at 134-23 35th Avenue. One of those three items was a sale which Sunlight Development bought 11 condo units in the 5,354-square-foot, 16-unit mixed-use building (RM) on 134-38 35th Avenue and zero other properties for $6.9 million from Amerasia Bank on October 8, 2025. One of those three items was a loan which Mei Ping Matsumura borrowed $6 million from Amerasia Bank secured by the 25,388-square-foot, 19-unit rental (C7) on 135-53 Northern Boulevard on September 22, 2025.

Direct link to the property’s ACRIS page and link to DOB NOW portal.