Delshah Capital gets $165M loan from Apollo to refi Morningside rental

Delshah Capital through the entity DS 30 Morningside Drive LLC as borrower signed a loan with lender Apollo Global Management through its Athene Annuity And Life Company valued at $165 million for the 205-unit property (D3) at 30 Morningside Drive in Morningside Heights, Manhattan.
The deal closed on December 16, 2022 and was recorded on March 1, 2023. The property has 265,216 square feet of built space and 21,932 square feet of additional air rights for a total buildable of 287,033 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $1,300 and the price per buildable square foot is $1,201 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The owner bought the property on June 13, 2016, for $111.5 million, and then commenced a renovation of the property into high-end apartments. Square Mile Capital provided a $130 million construction loan in 2017 and Delshah Capital borrowed another $50 million on the Tel Aviv Stock Exchange. In December 2020, Arbor Realty Capital refinanced that entire $180 million in debt. That was a two-year loan that was maturing in January 2023, according to a document on the Tel Aviv Stock Exchange.
The Apollo Global Management loan totaled $165 million, through a five-year, interest-only loan at 5.96 percent. To cover the remainder of the debt, a substitute $15 million mortgage was spread over Delshah Capital’s 55-61 Gansevoort Street property in the Meatpacking District, according to the city records.

The signatory for Delshah Capital was company CEO Michael Shah. The signatory for Apollo was Jeffrey Horowitz.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Michael Shah, head officer and Cliff Harrington, site manager. The business entity is Ds 30 Morningside Master Tenant Llc.

The PincusCo database currently indicates that Delshah Capital owned at least 44 commercial properties with 749,979 square feet, 645 residential units and a city-determined market value of $171.6 million. (Market value is typically about 50% of actual value.) The portfolio has $346.7 million in debt, with top three lenders as Arbor Realty Trust, Signature Bank, and Customers Bank respectively. Within the portfolio, the bulk, or 43 percent of the 749,979 square feet of built space are walkup properties, with elevator properties next occupying 39 percent of the space. The bulk, or 60 percent of the built space, is in Manhattan, with Brooklyn next at 40 percent of the space.

The property

The parcel has frontage of 208 feet and is 268 feet deep with a total lot size of 47,680 square feet. The zoning is R8 which allows for up to 6.02 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $61.7 million. The most recent loan totaled $180 million and was provided by Arbor Realty Trust on December 31, 2020.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received one DOB violation, $500 in ECB penalties, and $1,300 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on June 24, 2019. On the lot, there are two active new building construction projects and major alteration projects with initial costs more than $5 million, totaling 242,974 square feet. The largest is a major alteration project for a 205-unit, 698,698 square-foot R-2 building submitted by Michael Shah with plans filed July 21, 2016 and permitted June 21, 2017.

The block

On this tax block, PincusCo has identified the owners of one of the two commercial properties representing 265,216 square feet of the 776,783 square feet. The identified owner is Delshah Capital.
There are no active new building construction projects on this tax block.

The majority, or 66 percent of the 776,783 square feet of built space are specialty buildings, with elevator buildings next occupying 34 percent of the space.

Direct link to Acris document. link