Delshah buying 28-building portfolio for $100M-plus

Silvershore's 210-unit resi package almost entirely located in Brooklyn

TRD New York /
May.May 21, 2018 04:18 PM

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.

Related Articles

John Legere (Credit: Getty Images)

WeWork reportedly in talks to hire T-Mobile exec as CEO

(Credit: iStock)

Small Talk: Every community meeting. About every development project. Ever.

An example of roll-off waste management (Credit: YouTube, iStock)

A win for big building owners in trash-collection fight

Duke Long and Poshtel International CEO Morten Lund

“I can talk about erections all day”: NAR tech consultant’s bizarre fireside chat

Council member Vanessa Gibson (Credit: New York City Council)

Commercial landlords face new fines as City Council passes anti-harassment bill

From left: Pavel Fuks, Michael Cohen, Felix Sater, and Donald Trump (Credit: Getty Images and Wikipedia)

As House begins impeachment inquiry, here’s what we know about Trump’s Ukraine-real estate ties

Rodrigo Niño (Credit: Prodigy Network and iStock)

Embattled Prodigy Network CEO Rodrigo Niño to step down

The Watchtower building at 25 Columbia Heights, CIM Group’s Shaul Kuba (right) and LIVWRK’s Asher Abehsera (Credit: Wikipedia, CIM Group, and LinkedIn)

JPMorgan leads $335M refi for CIM and LIVWRK’s Watchtower renovation