Delshah close to securing $130M construction loan for Morningside project

Michael Shah would contribute $123M to the five-building development, TASE documents show

TRD New York /
Aug.August 30, 2017 03:01 PM

30 Morningside Drive and Michael Shah

UPDATED Aug. 30, 4:30 p.m.: Michael Shah’s Delshah Capital entered into a non-binding contract for a $130 million construction loan​ to finance a five-building project in Morningside Heights, the company reported on the Tel Aviv Stock Exchange.

Square Mile Capital will provide the funding, which will go towards financing the conversion of the five-building complex at 30 Morningside Drive into 205 high-end rentals. The projected cost of the development is $250 million.

Shah plans to contribute the remaining $122.5 million needed for the project, which it will fund with a combination of EB-5 money, the $52 million he raised in a recent bond issuance in Tel Aviv, and his own capital. Delshah purchased the complex for $102 million in 2014, also with funds raised in Tel Aviv.

According to the terms of the loan, income from the property will be held in a special account that will serve as collateral for the lender in addition to the property.

The three-year loan can be extended up to three times for a total of four years. The interest rate will be negotiated in the final contract, but will be be a minimum of 3 percent pegged to LIBOR, according to the documents filed on TASE.

Adam Hakim and James Murad from Eastern Consolidated brokered the deal with Square Mile on behalf of Delshah.

The deal is expected to close ​by November.

 

Related Articles

arrow_forward_ios
With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)

Real estate stocks push up this week as U.S.-China trade tensions ease

Real estate stocks push up this week as U.S.-China trade tensions ease
416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
109 East 79th Street and Victor Sigoura (Google Maps; Getty)

Victor Sigoura lands $133M construction loan for UES condo

Victor Sigoura lands $133M construction loan for UES condo
Barry Sternlicht and (from top) Capital Mall in Washington, Franklin Park Mall in Ohio and Plaza West Covina Mall in California (Credit: Capital via Starwood, Franklin via OCP Contractors)

Competing bids for Starwood’s suffering retail

Competing bids for Starwood’s suffering retail
From left: Mapleton Rentals at at 1555-1575 61st Street in Mapleton, 1440 Story Avenue in Soundview, Beard-Van Brunt at 411 Van Brunt Street in Red Hook

Abraham Leser targets $74M refi for Brooklyn, Bronx properties

Abraham Leser targets $74M refi for Brooklyn, Bronx properties
A rendering of 1998 Second Avenue in Harlem and Peter Fine (Credit: GF55 Architects)

Peter Fine inks $70M construction loan for Harlem resi project

Peter Fine inks $70M construction loan for Harlem resi project
Alex Sapir, CEO of the Sapir Organization (Credit: Getty; iStock)

Alex Sapir wants to take his firm private. This could be the right time

Alex Sapir wants to take his firm private. This could be the right time
JPMorgan Chase's Jamie Dimon and Fortress Investment Group's Wes Edens (Dimon via Mark Wilson/Getty Images; Edens via Scott Olson/Getty Images)

JPMorgan, Fortress are the latest firms to build up war chests

JPMorgan, Fortress are the latest firms to build up war chests
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...