After restructuring its balance sheet, Michael Shah’s Delshah Capital is back on the acquisition path.
Delshah bought 34 Berry Street in Williamsburg, Brooklyn, from LCOR for $76 million, the Commercial Observer reported. The deal for the 142-unit multifamily building works out to $535,000 per unit.
LCOR scored a sizable premium in the deal, having purchased the property two years ago for $53 million. Ares provided $62.3 million in acquisition financing to Delshah.
The property came online in 2010, featuring a majority of studio apartments with a mix of one- and two-unit spreads. Complete with a rooftop terrace and a resident lounge, Delshah plans on making capital improvements throughout the building.
A JLL team including Jeffrey Julien, Rob Hinckley and Steven Rutman represented the seller in the deal. JLL’s Michael Zaremski and Clayton Ross arranged the acquisition financing.
“This acquisition reflects where we are today as a company and the quality of assets that we pursue,” Delshah chief executive officer Michael Shah said in a statement, noting the company was “in a position to grow again with discipline.”
Shah’s firm is certainly growing, and not only on the multifamily front. In February, Delshah and A.M. Property Holding Corporation entered into contract to buy the CitySpire office tower in the Plaza District from Tishman Speyer and GIC.
The 70-story, 377,000-square-foot office building at 156 West 56th Street is being sold for $135.7 million, equating to $360 per square foot.
With one less building in its portfolio, LCOR can increase its focus on one of New York City’s most embattled development sites. The multifamily developer, which sports a portfolio of 10,000 residential units across the country, is part of Cirrus Real Estate’s Pacific Park “contours of a plan,” a vision expected to result in taller towers than previously planned and a net of 9,000 units.
— Holden Walter-Warner
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