The Real Deal New York

Delshah can’t reach financing deal with Moinian for Brooklyn luxury project

Michael Shah had been seeking $95M loan package at 22 Chapel Street
By Chava Gourarie | August 07, 2018 01:30PM

Clockwise from left: Renderings of 22 Chapel Street, Michael Shah and Joseph Moinian (Credit: BuzzBuzzHome, Delshah Capital, and Moinian Group)

Negotiations between the Moinian Group and Michael Shah’s Delshah Capital for a $95 million loan package on a Brooklyn project ended with no deal, according to documents filed with the Tel Aviv Stock Exchange.

The deal would have provided senior and mezzanine financing for a 20-story residential development at 22 Chapel Street in Downtown Brooklyn, a partnership between Shah and John Carson’s OTL Enterprises.

Under the terms of the deal, Moinian would have provided $61 million in senior financing and $34.5 million in mezzanine financing for the project.

The proposed development would bring 180 luxury rental building to the site of a drug treatment center.

The land, which also includes a parcel at 50 Flatbush Avenue Extension, is owned by the nonprofit, Start Treatment and Recovery Centers, which will be housed in the new building, occupying 13,500 square feet on the first and second floors.

Renderings for the 150,000-square-foot building were released in February, and the plans were approved in May.

Moinian recently closed on a $125 million loan to David Marx’s MDG Development, for the developer’s 29-story hotel at 461 West 34th Street, upping a previous $90 million loan that had come due.

Moinian Group and Delshah Capital were not immediately available for comment.