Delshah signs $16.2M condo inventory loan with Republic First in Alphabet City

Delshah Capital through the entity DS Avant 531 LLC as borrower signed a refi loan with lender Republic First Bank valued at $16.2 million for 13 properties including the property at 531 East 12th Street in Alphabet City, Manhattan.
The deal closed on April 21, 2022 and was recorded on May 9, 2022. The prior lender was Pacific Western Bank which held debt that had an original loan amount of $14.8 million.
The signatory for Delshah Capital was Michael Shah. The signatory for Republic First Bank was Jeffrey S. Wall.

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 531 East 12th St.

The property

PincusCo cannot determine the lot area of the 531 East 12th St parcel at this time.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties since September of 2020. In addition, according to city public data, the properties have not received any significant violations in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The block

On the tax block of 531 East 12th St, PincusCo has identified the owners of 12 of the 40 commercial properties representing 88,471 square feet of the 320,751 square feet. The largest owner is Kushner Companies, followed by Patrick McElhone and then Denali Management. There are two active new building construction projects totaling 19,137 square feet. The largest is a 10-unit, 10,589-square-foot R-2 building developed by Juan Barahona with plans filed March 14, 2019 and permitted October 2, 2020. The second largest is a 11-unit, 8,548-square-foot R-2 building developed by Juan Barahona with plans filed March 15, 2019 and permitted September 22, 2020.

The majority, or 66 percent of the 385,719 square feet of built space are residential walkup buildings, with walkup buildings next occupying 18 percent of the space.

The borrower

The PincusCo database currently indicates that Delshah Capital owned at least 13 commercial properties with 368,234 square feet and a city-determined market value of $51.4 million. (Market value is typically about 50% of actual value.) The portfolio has $234.4 million in debt, with top three lenders as Arbor Realty Trust, Signature Bank, and Amherst Capital Management respectively. Within the portfolio, the bulk, or 72 percent of the 368,234 square feet of built space are D3 properties, with residential walkup properties next occupying 21 percent of the space. The bulk, or 82 percent of the built space, is in Manhattan, with Brooklyn next at 18 percent of the space.

Surrounding

Within a 400-foot radius of 531 East 12th St, PincusCo identified 15 commercial real estate items of interests occurred over the past 24 months.
Of those 15 items, one was in new building development. It was a new building permit issued on October 2, 2020 for a 10,589-square-foot R-2 building with 10 residential units at 204 Avenue A.
Of those 15 items, one was for major renovation including a certificate of occupancy change. It was a permit issued on November 24, 2021 for the $1.4 million renovation of 11,824-square-foot R-2 building with 14 residential units at 533 East 11th Street.
Of those 15 items, four were sales above $5 million totaling $39.2 million. The most recent of the four was Denali Management which bought the 16,002-square-foot, 29-unit rental (C7) on 510 East 13th Street for $5.4 million from Vito Salerno on July 20, 2021.
Of those 15 items, nine were loans above $5 million totaling $148.7 million. The most recent of the nine was Patrick McElhone which borrowed $6 million from Morgan Stanley secured by the 6,681-square-foot, one-unit industrial (I5) on 540 East 13th Street on December 30, 2021.

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