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Michael Shah and 149 Rivington Street (Credit: Google Maps)
Michael Shah’s Delshah Capital is is buying a large Brooklyn-centric multifamily portfolio from Silvershore Properties for just over $100 million, The Real Deal has learned.
The buildings collectively span just shy of 200,000 square feet and include 210 residential units and 12 commercial units, according to documents Delshah filed with the Tel Aviv Stock Exchange, where the company has issued bonds.
The portfolio includes 28 buildings throughout Brooklyn, including Williamsburg, Bedford-Stuyvesant, Carroll Gardens and Bushwick, as well as two buildings on the Lower East Side in Manhattan, according to the documents. The buildings’ addresses were not immediately clear.
Although the documents did not disclose the seller, sources familiar with the properties said it is Silvershore Properties. Some of the properties were among the 57 that Silvershore put on the market last year amid the market slowdown, sources said.
Shah, who is paying a total of $100.7 million for the package, plans to upgrade the buildings and is looking to raise their collective net operating income by 31 percent from $4.8 million to $6.3 million in two years, according to the filing. Most of the buildings are small, with between four and 10 units and are therefore classified as 2a or 2b for tax purposes. State law limits the amount that the Assessed Values for such buildings can grow to no more than 30 percent over a period of five years. That will keep tax costs, and overall expenses low, the report notes.
Rich Velotta
Meridian Capital Group’s Rich Velotta and Abie Kassin brokering the deal, which is expected to close in August. Meridian confirmed its involvement, but declined to comment further.
Delshah declined to comment, and Silvershore could not be reached.
Delshah has additional holdings on the Lower East Side, including a 27-unit property at 138-140 Ludlow Street it bought in January for $18.9 million and an 18-unit building at 130 Orchard Street, which the company refinanced in April.
It’s been rare to see Brooklyn multifamily packages with so many buildings trade in recent months. A recent deal that comes to mind is Oak Tree Residential and Management and Avanath Capital Management’s $76 million deal for 18 buildings more than a year ago.
