The Real Deal New York

Delshah, OTL plan 180-unit resi building in DoBro

Mixed-use project at 22 Chapel Street will be rentals

June 15, 2016 01:35PM
By E.B. Solomont

22 Chapel Street. (Inset top to bottom: Delshah Capital’s Michael Shah, OTL Enterprises’ John Carson)

Michael Shah’s Delshah Capital and John Carson’s OTL Enterprises plan to construct a 180-unit luxury rental building in Downtown Brooklyn, replacing a longtime drug treatment facility with a new mixed-use building.

Plans call for the construction of a 20-story building at 22 Chapel Street between Jay Street and Flatbush Avenue Extension, according to documents filed Wednesday with the city’s Department of Buildings. The existing two-story brick building is home to the START Treatment & Recovery Centers Inc.

The new building will span 150,431 square feet with more than 15,200 square feet earmarked for a community facility, according to filings. It will also have nearly 2,000 square feet of ground floor retail and 87 parking spots.

According to the filing, the community facility will occupy parts of the cellar, first and second floors. The second floor will also house a lounge, party room, offices, children’s room and gym.

Apartments will occupy floors three through 20, with a pool and lounge on the 15th floor and rooftop terrace.

Calls to the developers were not immediately returned. But according to OTL’s website, the apartments will be luxury rentals. OTL will serve as construction manager and general contractor.

City property records show the property is owned by START. No demolition plans have been filed yet.

Earlier this year, Delshah raised more than $102 million on the Israeli bond market. The deal was backed by the landlord’s portfolio of 13 New York City assets valued at more than $500 million, the company said. Delshah will use proceeds for investments in the existing portfolio, and to fund additions to its pipeline, the company said at the time.

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