Delshah Capital signs $5.5M refi loan with Peapack for retail in Garment District

Delshah Capital through the entity Delshah 461 Seventh Avenue LLC as borrower signed a refi loan with lender Peapack Private Bank & Trust valued at $5.5 million for the retail building (K2) at 461 7th Avenue in Garment District, Manhattan.
The deal closed on March 5, 2026 and was recorded on March 20, 2026. The prior lender was Vedder Price registered which held debt that had an original loan amount of $6.8 million.The property has 2,760 square feet of built space and 11,040 square feet of additional air rights for a total buildable of 13,800 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $1,992 and the price per buildable square foot is $398 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 May 15, 2015, for $14 million. The signatory for Delshah Capital was Michael K. Shah . The signatory for Peapack Private Bank & Trust was Zachary Bermudez .

The property

The retail building in Garment District has 2,760 square feet of built space and 11,040 square feet of additional air rights for a total buildable of 13,800 square feet according to a PincusCo analysis of city data. The parcel has frontage of 23 feet and is 60 feet deep with a total lot size of 1,380 square feet. The zoning is C6-4 which allows for up to 10 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $2.1 million. Peapack Private Bank & Trust on March 5, 2026 bought a loan with an original principal of $6.8M from Vedder Price registered signed by Robert Salame , secured by 461 7th Avenue, when owned by Delshah Capital .

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 $5,070 in OATH penalties in the last year.

Development

On the lot, there is one active major alteration construction project, M00518598, for a 7,727 square-foot E building. The project was submitted by Josephine Campeau with plans filed May 18, 2021 and it has not been permitted yet.

The neighborhood

In Garment District, The majority, or 69 percent of the 52.3 million square feet of commercial built space are office buildings, with hotel buildings next occupying 13 percent of the space. In sales, Garment District has the 10th highest sale turnover among other neighborhoods in the city with $1.4 billion in sales volume in the last two years. For development, Garment District is the 5th most active neighborhood among other neighborhoods. It had 11.1 million square feet of commercial and multi-family construction under development in the last two years, which represents 21 percent of the neighborhood’s built space. There were 35 pre-foreclosure suit filed among other retail buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of two of the three commercial properties representing 2,194,848 square feet of the 2,200,848 square feet. The two identified owners are Macy’S Inc. and Delshah Capital.
There are no active new building construction projects on this tax block.

All properties are retail.

The borrower

The PincusCo database currently indicates that Delshah Capital owned at least 34 commercial properties with 755 residential units in New York City with 824,641 square feet and a city-determined market value of $164.7 million. (Market value is typically about 50% of actual value.) The portfolio has $616.3 million in debt, with top three lenders as Arbor Realty Trust, Apollo Global Management, and Signature Bank respectively. Within the portfolio, the bulk, or 52 percent of the 824,641 square feet of built space are elevator properties, with walkup properties next occupying 34 percent of the space. The bulk, or 52 percent of the built space, is in Brooklyn, with Manhattan next at 48 percent of the space.

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