Bank of China provides a $68 million USD loan to United Construction and Development Group Corp. to finance its acquisition of 131-01 39th Avenue in Flushing, Queens

Project narrative

On April 14, 2022, the New York Branch of the Bank of China (BOC) entered into a $68,000,000.00 USD term loan agreement with Flushing Waterfront LLC — a New York-incorporated limited liability company and subsidiary of United Construction and Development Group Corp. (UCDG), a real estate developer based in Corona, Queens, New York City founded and managed by Chris Jiashu Xu, a Chinese immigrant to the United States — to finance its acquisition of 131-01 39th Avenue. The loan was secured by (i.e. collateralized against) a $68,000,000 USD mortgage on the real property and all buildings, structures, fixtures, additions, enlargements, extensions, modifications, repairs, replacements and other improvements on 131-01 39th Avenue, an assignment of leases and rents associated thereof, a security agreement, and a $19,375,000.00 USD gap mortgage on 131-01 39th Avenue, all charged by Flushing Waterfront LLC to the New York Branch of BOC (as administrative agent) in documents dated April 14, 2022. The proceeds were to be used by the borrower to finance the acquisition of 131-01 39th Avenue, a vacant 139,378-square foot plot of land (development site) located at intersection of College Point Boulevard and 39th Avenue along the Flushing Creek in Flushing, Queens, New York City, New York. The property was formerly site of the Korean supermarket Assi Plaza. The property had permits filed by its seller, Young Nian Group LLC, in 2019 to construct a 19-story, 664,000-square-foot mixed-use building with two residential towers, a hotel tower, and retail and community spaces. United Construction paid Young Nian Group $103.75 million USD for the property. The acquisition was completed on or around April 14, 2022. As a result of the new loan, China CITIC Bank International Limited assigned its rights under a past mortgage that supported a $57.5 million USD loan to Young Nian to acquire the property in 2017 (see Record ID#111070), to BOC. In June 2022, it was reported that United Construction was planning to construct a mixed-use development with residential, commercial, and community space in the Flushing West Rezoning area of the property, with a 245-foot tall residential tower with 368 residencies and 340,000 square feet of space, 314,000 square feet of commercial space including retail and dining, 11,000 square feet of community space, and 331 enclosed parking spaces. It hoped to begin work in 2022.