HFZ Capital has discussed selling a chunk of discounted units at The XI. Price drops for such deals at the West Chelsea luxury project varied, but amounted to around 20 percent, TRD noted.
- Flashback: HFZ paid Edison Properties $870 million in 2015 (roughly $1,100 per SF) for the site. The developer subsequently landed a $1.25 billion construction loan from The Children’s Investment Fund in 2017. The XI has a projected sellout of $1.96 billion.
- Dig Deeper: The 950,000-square-foot development consists of a pair of twisting towers and includes 236 condos, a 137-key five-star hotel operated by Six Senses Hotels Resorts Spas, and a 90,000-square-foot retail component. The original asking prices at the development averaged a whopping $4,000 per SF.
- Discounts are the tip of an iceberg: Previous condo inventory loans, a glut of supply, and slowing sales velocity revealed cracks – this economic downturn will cause distress for those who are overleveraged.