XIN Development International, the US subsidiary of Chinese development giant XINYUAN Real Estate Ltd., has secured a $108 million construction loan for its first Manhattan development.
The Bank of Ozarks funded the non-recourse loan in a deal arranged by Eastern Consolidated’s Capital Advisory Division.
615 Tenth Avenue is XIN Development’s second major residential project in the New York City area following the record-breaking Oosten condominium in South Williamsburg.
“Securing a construction loan of this caliber in the current financing environment for only our second project in the New York market is a testament to the quality and success of our South Williamsburg project, the Oosten,” said John Liang, president of XIN Development International.
“We’re extremely pleased to have closed on this transaction for 615 10th Avenue as we continue to grow our footprint in Manhattan and the United States.”
615 10th Avenue is currently under construction on the entire block front between 44th and 45th streets. The mixed-use residential development will rise to seven stories with 82 condominiums and a flexible-format Target as the anchor tenant on the ground and lower levels.
“The ability to close our second loan with Bank of the Ozarks within a 15 month period, further cements our strategy of buying land at the right price and creating tremendous value with retail,” added Can Tavsanoglu, Director of Acquisitions and Finance at XIN Development International.
Adam Hakim, managing director, and James Murad, director, at Eastern Consolidated arranged the financing with the lender.
Last year, Hakim arranged a $27 million bridge loan with Bank of the Ozarks on behalf of XIN Development to finance the acquisition of the property, which was previously home to a gas station and convenience store.
“This is a fantastic location for XIN Development, in the heart of the rapidly developing Midtown West section of Manhattan,” Hakim said.
“XIN Development is an experienced sponsor that has developed high-end residential buildings with luxury units and an array of amenities in other parts of New York City.”