Real estate developer Michael Shah has found a deep-pocketed buyer for his distressed Meatpacking District building.
An entity tied to London-based BNF Capital is in contract to buy the three-story building at 58-60 Ninth Avenue for $21 million, PincusCo reported. Shah’s Delshah Capital placed the retail property in bankruptcy, along with another building at 69 Gansevoort Street, last week after a $28 million mortgage against the properties fell into default.
Proceeds from the sale will be used to pay down a portion of the estimated $35.2 million debt on the properties, according to PincusCo. The Gansevoort property is in contract to be sold for $9.25 million to another buyer.
Wells Fargo filed a foreclosure suit last year on behalf of the commercial mortgage trust that held Shah’s loan. Shah had struggled to collect rent from key tenants.
That wasn’t the first lawsuit connected to the property. Commercial real estate agency Avison Young alleged last May that Shah paid less than half of the $220,000 he owed the firm for brokering commercial leases.
A previous tenant, Urban Outfitters’ brand Free People, stopped paying rent at the start of the pandemic. Shah terminated the lease in June 2020 and sued the fashion retailer for the missed payments. A federal judge in 2022 found the tenant liable for over $13 million.
BNF is the family office of the billionaire family behind the Perenco oil company. The secretive Perrado family has been investing in high-end real estate, diamonds and clothing, according to Bloomberg.
It purchased a mixed-use building at 43 Crosby Street in Soho last year for $20.8 million.
– Elizabeth Cryan
Read more
Free People liable for $13M over Delshah Meatpacking property
DelShah makes another Meatpacking score
More trouble for Michael Shah in Meatpacking District
