DelShah Capital has stepped up its efforts to wrest control of the Flatiron Hotel. The firm, which owns the debt on the property, is seeking a court order forcing the beleaguered owners and property manager Smart Apartments to pay it rent directly, as well as hand over a bevy of documents necessary to operate the property.
An affiliate of DelShah, led by CEO Michael Shah, originally sued the owners of the hotel at 1141 Broadway in September in New York State Supreme Court, as The Real Deal reported. The company, which acquired the hotel’s outstanding mortgage debt earlier this year, claimed that Smart Apartments failed to start paying rent directly to DelShah instead of the owners, as required under a lease agreement, and racked up 15 building code violations. [more]