Xinyuan gets $45M condo inventory loan with Klimart Capital at the Oosten in Williamsburg

Xinyuan Real Estate through the entity 421 Kent Development, LLC as borrower signed a refi loan with lender Klimart Capital through the entity Km 429 Kent Avenue Us Financing, LLC valued at $45 million for 26 condominium units at the Oosten at 429 Kent Avenue in Williamsburg, Brooklyn. The loan replaced debt provided by an EB-5 group.
The deal closed on April 4, 2022 and was recorded on April 26, 2022. The prior lender was iCross Capital which held debt that had an original loan amount of $54.5 million. The 26 properties have 70,369 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $639 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.)
The signatory for Xinyuan Real Estate was Jared Simon. The signatory for Klimart Capital was Michael Friedman. Lily Guo is the president of iCross Capital.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 429 Kent Avenue.

The property

The 429 Kent Avenue parcel has a total lot size of 5,097 square feet. The property has a 421A exemption that started in 2019 and expires in 2034. The most recent loan totaled $55 million and was provided by American Regional Center for Entrepreneurs on March 9, 2017.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties since September of 2020. In addition, according to city public data, the properties have not received any significant violations in the last year.

Development

For the tax lot buildings, one out of the 26 buildings received an initial certificate of occupancy in the last ten years. There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot. On one of the tax lots, there was a condominium project filed with the address 429 Kent Avenue and the name Oosten Condominium on November 14, 2013. The principals of the sponsor, 421 KENT DEVELOPMENT, LLC, was Yong Zhang.

The block

On the tax block of 429 Kent Avenue, PincusCo has identified the owners of five of the 64 commercial properties representing 207,459 square feet of the 216,486 square feet. The largest owner is Bernard Jacobowitz, followed by Mendy Green and then Silver Star Properties.

All properties are residential elevator.

Surrounding

Within a 400-foot radius of 429 Kent Avenue, PincusCo identified two commercial real estate items of interests occurred over the past 24 months.
Of those two items, two were loans above $5 million totaling $596 million. The most recent of the two was Spitzer Enterprises which borrowed $298 million from 2020-420K secured by the 245,306-square-foot, 253-unit rental (D7) on 416 Kent Avenue and one other property on February 11, 2021.

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