See Why Chinese Real Estate Firm Is Foreclosing on Its Own Hudson Yards Project

Aug. 12, 2015 — When we last checked in on the Hudson Yards skyscraper project, which involves building a 47-story condo and hotel tower, things were pretty tense between Chinese private equity firm Kuafu and its partners, Blackhouse Development and Siras Development. Back in March, Kuafu was hoping a judge would force its local partners to turn over their stakes in the project. Five months later, reports the New York Daily News, it looks like Kuafu is "making moves to force the foreclosure of [the] site." According to the Daily News, the Chinese real estate giant, via an affiliate, acquired "a $44.4 million loan granted to the project by banking giant UBS and is now filing to foreclose on itself and its partners, citing a loan maturity default." What's this mean? Well, if it's successful, "Kuafu could force a public auction of the property and then potentially submit its own bid to purchase it for a second time — without its current partners, Blackhouse Development and Siras Development." Of course, points out the Daily News, it would have to outbid any potential competitors. It's like a brilliant game of chess. We'll be watching to see what the next move is. It's not checkmate just yet.