Delshah Capital signs $70M refi loan with Signature Bank for 28 properties in NYC

Delshah Capital through the entity Ds Brooklyn Portfolio Owner LLC as borrower signed a refi loan with lender Signature Bank valued at $70 million for 28 properties including the 25-unit residential walkup building (C1) at 219 13th Street in South Slope, Brooklyn, 19-unit residential walkup building (C7) at 802-808 Prospect Place in Crown Heights, Brooklyn, and six-unit mixed-use building (S9) at 236 Howard Avenue in Bedford Stuyvesant, Brooklyn.
The deal closed on October 20, 2022 and was recorded on November 1, 2022. The 28 properties have 196,403 square feet of built space and 14,828 square feet of additional air rights according to PincusCo analysis of city data. The loan price per built square foot is $356 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 signatory for Delshah Capital was Michael Shah. The signatory for Signature Bank was Zachary Bermudez.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 278 Dean Street.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Michael Shah, head officer and Brian Conroy, site manager. The business entities are Ds Brooklyn Portfolio Owner Llc and Ds Brooklyn Portfolio Owner Llc. Out of the 28 properties, 11 with a total of 196,403 square feet of built space generated revenue of $2.7 million per year.

The property

The 278 Dean Street parcel has frontage of 25 feet and is 100 feet deep with a total lot size of 2,500 square feet. The zoning is R6A which allows for up to 3 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $3.6 million.

The block

On the tax block of 278 Dean Street, PincusCo has identified the owners of three of the 11 commercial properties representing 30,399 square feet of the 162,765 square feet. The largest owner is Delshah Capital, followed by Traina Companies and then Indev Real Estate.
There are no active new building construction projects on this tax block.

The majority, or 61 percent of the 162,765 square feet of built space are office buildings, with walkup buildings next occupying 34 percent of the space.

The borrower

The PincusCo database currently indicates that Delshah Capital owned at least 45 commercial properties in New York City with 775,694 square feet and a city-determined market value of $185.6 million. (Market value is typically about 50% of actual value.) The portfolio has $276.7 million in debt, with top three lenders as Arbor Realty Trust, Signature Bank, and Customers Bank respectively. Within the portfolio, the bulk, or 41 percent of the 775,694 square feet of built space are walkup properties, with D3 properties next occupying 34 percent of the space. The bulk, or 62 percent of the built space, is in Manhattan, with Brooklyn next at 38 percent of the space.

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