Silvershore Properties founders part ways

Heads of multifamily investment firm shutter office and sell half of NYC holdings

Jul.July 10, 2018 01:44 PM

Left to right: David Shorenstein, Jason Silverstein, 283 Albany Avenue, 429 Lincoln Place, and 219 13th Street in Brooklyn (Credit: Apartments and Google Maps)

The founders of Silvershore Properties are going their separate ways.

Jason Silverstein and David Shorenstein have shut down their NoMad headquarters and sold off about half of their roughly 100-building New York City multifamily holdings over the past year, The Real Deal has learned.

Silverstein said he is launching his own yet-unnamed firm in Los Angeles, where he plans to focus on California real estate acquisitions and eventually build a national investment platform across several asset types. Shorenstein’s plans were not immediately clear; he did not respond for comment.

“We built a company together over 10 years and it’s inevitable in any partnership that, at some point, you may want a fresh outlook and to do your own thing,” Silverstein told TRD. “It’s not a matter of bad blood, but rather a matter of a different vision for the future.”

The partners founded Silvershore in 2008, when they were in their early 20s, as an investment firm largely focused on short-term flips of low-rise, roughly 10-unit rent-stabilized buildings in Manhattan and Brooklyn. Last year, the firm placed a whopping 57 buildings on the market for sale, at the height of the multifamily market slowdown.

Around that time, Silvershore brought in Joe Wasser’s J. Wasser & Co. to take over property management for its entire catalogue. Wasser, who could not be reached for comment, has been in charge of renovating some of the properties and removing violations, sources said.

The properties on the market ended up selling in much smaller increments. In one of the bigger tranches, Michael Shah’s Delshah Capital agreed to buy 28 of the buildings for north of $100 million in May this year.

In late May, Silvershore vacated its sole, 30-person office at 38 East 29th Street and returned it to the landlord, PRD Realty Corporation, which subsequently leased it to the flexible-office provider Knotel. A source said the landlord had the right to recapture the space prior to the expiration of Silvershore’s lease.

According to Silverstein, after the Delshah deal closes, about 50 buildings will remain under Wasser’s management and under Silvershore’s ownership. Some of the buildings will be put up for sale, and others will be held for the long term. The company heads however will be focused elsewhere.

“It’s not that my eyes are closed to New York real estate,” Silverstein said. “They’re just open to a new market.”

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