Michael Shah

From the June issue: DelShah Capital, a leading buyer of distressed properties in New York City, has formed DelShah Lending, the company announced last month.

The new lending arm will provide mezzanine and bridge loans up to $50 million at an interest rate of 12 percent for bridge funds and a rate “in the high teens” for mezzanine funds; borrowers will receive financial advice as well, CEO Michael Shah told The Real Deal. [more]

Michael Shah and Setai Wall Street

A New York federal judge threw out a securities fraud suit on Tuesday brought by Michael Shah’s DelShah Capital against Zamir Equities that arose out of a commercial-to-residential condominium conversion at Setai Wall Street, Law360 reported. [more]

From left: Michael Shah and Morgan Lofts at 11 East 36th Street

A judge has approved Michael Shah’s bankruptcy plan for two retail condominiums at the Morgan Lofts development in Murray Hill, The Real Deal has learned.

The bankruptcy court ruling allows Shah to sell the units for a little more than $6 million to Manhattan-based Dishi & Sons. The deal must close within 30 days, a representative for Shah’s DelShah Capital told TRD. [more]

Michael Shah From the April issue: Michael Shah, principal of DelShah Capital, has been making moves lately — especially with recent acquisitions in the Meatpacking District. In this month’s Meet the Landlord feature, he talks to The Real Deal about his career change from law, the challenges of being a city landlord and his strangest tenant experience…. [more]

1314 Seneca Avenue and Michael Shah (credit: PropertyShark)

DelShah Capital has sold the last of its Bronx properties, this time selling a six-story apartment building in Hunts Point for $6.9 million, according to records filed with the city today. [more]

Michael Shah and 55 Gansevoort Street

A New York State Supreme Court judge yesterday dismissed a lawsuit disputing the ownership of 55 Gansevoort Street, a vacant Meatpacking District building that DelShah Capital is marketing as a possible boutique hotel conversion. The ruling brings an end — at least for now — to a clash between DelShah and Robert Romanoff, a former owner who claimed that the transfer of the property, which had been signed for by his father on the deed, was unauthorized. [more]

From left: Michael Shah, 55 Gansevoort Street, a proposed rendering and Jeffrey Julien

With an ownership dispute ongoing, DelShah Capital is planning to lease a vacant Meatpacking District building to a tenant who could redevelop the five-story property as a boutique hotel, The Real Deal has learned. The 25,109-square-foot building, located at 55 Gansevoort Street, would come with a triple net lease, according to marketing materials. [more]

Michael Shah, principal at DelShah Capital

The real estate investment firm DelShah Capital, whose specialty is acquiring assets tied up in court, paid $3.4 million at auction for a package of 21 three-family homes located in Brooklyn’s East New York.

The houses were auctioned in Brooklyn after developer Thomas Kontogiannis pleaded guilty in 2010 in Brooklyn federal court to conspiracy to commit bank and wire fraud. Prosecutors said Kontogiannis orchestrated an illegal $92 million mortgage scheme using straw buyers and homes in Brooklyn and Queens, defrauding lenders DLJ Mortgage Capital and Washington Mutual. Nine people were charged in the alleged scam, eight of whom pleaded guilty, while one died in the course of the proceedings. A federal judge in 2011 said it appeared to be “one of the largest mortgage-origination frauds on record.”  [more]

1314 Seneca Avenue

[Updated 4:25 p.m. with statement from Shah's attorney] Though DelShah Capital CEO Michael Shah has moved on to lucrative distressed acquisitions from his early investments in affordable housing, it’s his very first transactions that have him in trouble with the city.

Crain’s reported that Shah “is battling the city over fraud penalties, back taxes and interest, charges that officials leveled last month stemming from four of his early purchases.” [more]

DelShah Capital, led by investor Michael Shah, has officially re-launched the Sunrise Terrace Condominiums in Flushing, Queens, after acquiring the unsold shares at the stalled complex at a foreclosure auction in July.

DelShah, after acquiring the project’s original $9.6 million senior mortgage from ChinaTrust in November 2009, spent nearly two years working to take over the deal after negotiating a complex series of legal hurdles and direct negotiations with several creditors involved in the project.

Delshah acquired the property’s $6.9 million loan balance for $3.7 million in a foreclosure auction, after a judgment was issued against the previous owners, Paramount Management, in April.

Sunrise Terrace has operated in a tough submarket in Flushing, competing against larger rivals like SkyView Parc and other new condominiums. … [more]