There might soon be new life for the city’s most-watched, stalled residential development — the twin-tower condos known as XI at Eleventh Avenue and West 17th Street.
Powerful New York real estate investor Steven Witkoff is in a prime position to take control of the $2 billion project on the High Line where work stopped 20 months ago, sources told The Post.
The sources said that Witkoff leads a group that aims to purchase over $1 billion in debt on the project where developer Ziel Feldman defaulted last summer. Construction ceased in late 2019 after the 2016 groundbreaking.
Witkoff’s company, Witkoff Group, has investments around the US. He developed the celebrity-strewn apartment building at 150 Charles St., where owners have included Jon Bon Jovi, Ben Stiller and Irina Shayk.
Witkoff also owns the Woolworth Building’s office floors and invested heavily in the Times Square Edition hotel.
It was not immediately known whether his offer to buy the XI debt involved Witkoff Group or other investors.
The unfinished XI — also called “The Twists” for 26- and 36-story towers set askew from one another by architect Bjarke Ingels — has long puzzled High Line visitors and luxury apartment market-watchers. The project was to have 236 luxurious units priced up to $25 million, a high-end hotel and an elaborate spa.
The debt is being sold at auction following a judge’s ruling that Feldman’s HFZ Capital Group owes a prime lender, Britain’s Children’s Investment Fund, $136 million in monthly interest payments since April 2020.
Construction manager Omnibuild filed a $100 million lien against the project in 2020 — among scores of creditor claims for unpaid bills.
“There was a ton of interest in XI,” a source said of the auction. “A lot of things have to happen first, but Witkoff came out of it holding the pole position.
“Controlling the debt is the same as controlling the property, whether it’s Witkoff or anyone else.”
Neither Witkoff nor Helene Feldman, an HFZ principal, responded to messages seeking comment. Neither did Cushman & Wakefield brokers Adam Spies and Doug Harmon who were reported to be marketing the debt.
The Post previously reported that a public debt auction originally set for Oct. 28 was postponed until late December. It was not known whether Witkoff’s bid would pre-empt the rescheduled auction.
Read More:NYC real estate mogul Witkoff poised to seize ‘Twists’ tower project