X
in Development Group has abandoned its struggling Hell's Kitchen condo project, Bloom on 45th. The Chinese developer sold 51 unsold units back to lender BH3 Management for $50 million on October 15. This ends a long-standing dispute between Xin and BH3 over the 92-unit development at 500 West 45th Street.

    BH3 initiated foreclosure proceedings in September 2023, but Xin responded with a lawsuit before filing for bankruptcy protection in January. The property consists of five commercial units and 92 residential units, with nearly two-thirds remaining unsold at the time of bankruptcy. Xin valued the commercial units at $53 million and the unsold residential units at $70 million.

    Sales began at the eight-story building in 2020, but slowed due to COVID-19, interest rates, and regulatory restrictions. BH3 has been "aggressive" in its foreclosure efforts, according to Xin's bankruptcy petition. The property is anchored by Target, which pays around $221,000 in monthly rent.

    BH3 plans to launch a new sales campaign after acquiring the units from Xin. At the time of sale, BH3 still held around $57 million in debt on the property. This marks the third NYC project developed by Xin to face foreclosure proceedings in recent months, following Oosten in Williamsburg and a 269-unit Queens project.