DelShah pays $27M for Village building, with eye on retail rents

Michael Shah’s DelShah Capital is paying about $27 million for a mixed-use West Village property with the idea that retail rents in the neighborhood will skyrocket. The 21,849-square-foot building at 100-102 Christopher Street has ground-floor space for three stores that clothier Rag & Bone now occupies and four-floors of 37 rental units, several of them are at market rate.

Shah is in contract to buy the building from Stone Street Properties’ Jeffrey Kaye and Robert Morgenstern, who paid $16.5 million for it in 2011. Neither Shah nor the sellers could be reached for comment by the New York Post.

Sources told the newspaper that Shah expects retail rents in the area to increase from the going rate of $200 per square foot to $250 square foot.  Nearby Bleecker Street commands $400 to $450 per square foot.

Shah just closed on a mixed-use property at 69 Gansevoort in the Meatpacking District that cost him $8.6 million. [NYP, 3rd item]  – Hiten Samtani