Michael Shah’s Delshah Capital closed on the purchase of a Herald Square retail building on the corner of West 35th Street and Seventh Avenue for $14 million, The Real Deal has learned.
The two-story, 2,760-square-foot property is located adjacent to Macy’s in Herald Square. The department store was interested in the property as well, Shah said, but the developer moved “extremely fast” to close. The building is one of only two on the block that is not owned by Macy’s.
Shah told TRD that the property at 461 Seventh Avenue lends itself to being a flagship store for a retail tenant. The outside of the building itself would serve as a billboard for the brand, he said.
It’s still unclear who will occupy the space. A Korean deli is currently located there.
“Delshah’s flexible capital and ability to move quickly was a differentiating factor in this acquisition,” Jeff Bogino, managing director of Delshah, said in a statement.
Capital Source provided $9 million in funding for the project.
Shah, who is developing a Chelsea condo building at 221 West 17th Street, said he envisions substantial changes on Seventh Avenue in the coming years.
Parts of Seventh Avenue in that area are currently sloppy, he said.
But, Shah continued, “it’s going to be awesome.”