The Real Deal New York

DelShah Capital nabs debt at boutique condominium No. 22 Renwick

Soho property sold following $25M foreclosure judgment

October 04, 2012 03:00PM

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From left: No. 22 Renwick and Michael Shah, principal at DelShah Capital

DelShah has acquired the mortgage debt at No. 22 Renwick, a boutique condominium development at 22 Renwick Street in the Hudson Square neighborhood, according to a statement from DelShah today.

The original developers’ interest in the embattled project, where buyers sued after the developers failed to complete construction, was sold by Eastern Consolidated’s David Schechtman and Alan Miller following a foreclosure judgment against the developers for nearly $25 million.

The 19-unit luxury condominium, located between Spring and Canal streets, contains one ground-floor commercial space, and was designed by Philip Johnson and Alan Ritchie Architects.

DelShah won a June auction and closed on the development this week.

“The design pedigree of 22 Renwick and its key location in west Soho makes this a property with tremendous potential,” DelShah principal and CEO Michael Shah said in the statement. “Renwick Street is going through a renaissance.”

Orange Management and Helix Partners, the original developers, ceased construction at the project when it was about 80-percent built, as funds dried up due to the recession.

DelShah will finance the completion of the remaining construction of the 24,200-square-foot property with the aid of OTL Enterprises, a Manhattan-based privately held real estate investment firm, which will contribute equity, the statement said.

As The Real Deal has reported, construction on the troubled condo began four years ago, and it has been plagued with lawsuits and a complaint filed with the New York State Attorney General’s office. In 2009, condo buyers at the building sued to get their deposits back after the developer failed to deliver the units on time. Orange Management and Helix Partners eventually returned the funds.

MB Financial Bank, which took over for the project’s original lender Broadway Bank (now defunct), filed to move forward with foreclosure last year, at which point all 19 condos were unsold and unoccupied.

The build-out of 22 Renwick should be complete by early next year. Shlomi Reuveni of Brown Harris Stevens Select will market the project. — Guelda Voien

 

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