Delshah closes on $180M refi for Morningside rental project

Loan on luxury conversion will redeem Israeli bond series

New York /
Jan.January 04, 2021 12:30 PM
Delshah Capital's Michael Shah and 30 Morningside Drive (Photos via Delshah; 30 Morningside Drive)

Delshah Capital’s Michael Shah and 30 Morningside Drive (Photos via Delshah; 30 Morningside Drive)

Delshah Capital has landed a $180 million refinancing for its luxury rental conversion project at 30 Morningside Drive in Morningside Heights, the developer announced Monday.

Arbor Realty Trust funded the new loan, which takes out $130 million in construction financing provided by Square Mile Capital in 2017. It will also allow Delshah to redeem a $50 million bond series it issued on the Tel Aviv Stock Exchange that year.

Delshah founder and CEO Michael Shah said the company was able to execute the bond repurchase program as other U.S.-based TASE bond issuers defaulted or were “downgraded, or delisted as a result of 2020’s challenges.”

The Morningside project project received temporary certificates of occupancy for its 205 residential units last month, and has brought all amenities online — including a gym, bar, library, children’s playroom and billiards room, according to its website. A disclosure regarding the financing was also filed with the Tel Aviv Stock Exchange on Sunday.

Together with a $174 million refinancing for the Park Hill apartment complex in Staten Island last May, the developer has now closed more than $350 million in refinancing since the start of the pandemic.

While coronavirus has put some pressure on New York City’s rental market, Arbor expressed confidence in the property, which previously consisted of five medical facility buildings developed for St. Luke’s Hospital in the 1890s.

“We were very comfortable with asset and sponsor quality, so we were happy to provide [Michael Shah] with the flexibility necessary to lease up Morningside at his pace,” said Arbor vice president Alexander Kaushansky, who arranged the financing.

With new financing locked in for its current portfolio, Delshah is now looking to take advantage of opportunities presented by market dislocation and the pandemic. “We believe now is the time to acquire in New York City, and we expect to be quite active in acquisitions and equity restructurings,” Shah said.





    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
    Cindat Capital Management CEO Greg Peng and Hersha Hospitality Trust CEO Jay Shah with 51 Nassau Street (Google Maps)

    7 Manhattan hotels head to auction block

    7 Manhattan hotels head to auction block
    Clockwise from top left: 48 Bedford Avenue in Williamsburg; 7601 4th Avenue in Bay Ridge; 55-25 58th Street in Maspeth; 42, 44 and 46 21st Street in Flatiron; 59-20 Van Doren Street in Corona (Photos via StreetEasy; Google Maps)

    Mid-market investment sales off to strong start in 2021

    Mid-market investment sales off to strong start in 2021
    (Getty, iStock)

    Flooding caused by climate change leads to mounting real estate costs

    Flooding caused by climate change leads to mounting real estate costs
    Mickey Rabina and 520 Fifth Ave. (Rabina, Ceruzzi Properties)

    Rabina files plans for 70-story tower at beleaguered Fifth Ave site

    Rabina files plans for 70-story tower at beleaguered Fifth Ave site
    One New York Plaza, One Madison Avenue and 605 Third Avenue top the list of largest real estate loans. (Brookfield, Wikimedia Commons, Fisher Brothers)

    These were the largest Manhattan real estate loans in December

    These were the largest Manhattan real estate loans in December
    Ziel Feldman and renderings of the West Chelsea property. (The Xi)

    HFZ is behind on $160M in payments at the XI: lender

    HFZ is behind on $160M in payments at the XI: lender
    arrow_forward_ios

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

    Loading...