Press Release

Delshah Capital, LLC
114 E 13th Street, Front 1 New York, NY 10003

www.delshah.com

FOR IMMEDIATE RELEASE

DELSHAH CAPITAL ADDS TO ITS PORTFOLIO WITH PURCHASE OF DEFAULTED NOTE

Senior Note collateralized by 10,948 SF Mixed-Use Building in Prime East Village Location

New York – April 19, 2017 – Delshah Capital, LLC, (“Delshah”), a full- service commercial real estate investment and property management company, announced today that it has successfully purchased a non-performing senior mortgage note encumbering 97 2nd Avenue, a 10,948 SF, 6 story mixed-use building featuring 10 residential units and 2,245 SF of ground floor retail. The Property is located on 2nd Avenue between 5th and 6th Street, and is 100% leased. Delshah purchased the note all cash, at a basis of $868/SF, which represents approximately a 61% LTV.

This investment furthers Delshah’s growth from LES into the East village, where it sees long term growth opportunities.

“This investment is in line with Delshah’s core competency of purchasing distressed debt in an emerging submarket. Our expertise and platform allows us to develop a business plan to operate the Property in the event we need to foreclose.” said Michael Shah, Principal and CEO of Delshah Capital. “Our ability to identify this opportunity and close within days, start to finish, is a testament to our firm’s flexible capital, quick decision making and strong relationships.” “We also love the East Village.”

“This note acquisition is the first of many impending distressed debt situations we see on the horizon.” said Rohun Khanna, Senior Associate at Delshah Capital. “We intend to be very active in the next wave to create a portfolio of non-performing debt, with multiple paths to generate outsized returns.”

Other significant transactions for the firm over the last year, including the acquisition of 30 Morningside Drive, and execution and delivery of 16,763 SF to Galerie Perrotin for the relocation of their flagship NYC gallery from Madison Ave to 130 Orchard Street. The firm also is relaunching its luxury condo development at 225 West 17th Street in Chelsea after suffering a setback from a fire.

About Delshah Capital: Delshah is a full-service vertically integrated commercial real estate

investment firm, specializing in acquiring, developing, and managing multi-family, retail, and office properties or CRE loans throughout New York City. Founded by Michael Shah in 2006, today the firm consists of over 40 professionals within its commercial real estate investment and property management groups. Delshah utilizes a fundamental, value-driven approach towards its investments and has expertise in identifying, structuring, and managing real estate investments on behalf of institutional clients and for its principal account.

Since its inception, the firm has grown its equity value from approximately $15MM to over $327MM, and currently owns a portfolio of over 2MM square feet valued more than $800MM, which is expected to grow to $975MM with projects under development. The current portfolio contains 17 real estate assets, composed of 1,200 residential rental units and 10 retail units across the five boroughs of NYC.

For more information about this, or other transactions, please contact Rohun Khanna (917) 522- 6704 Ext. 102, rohun@delshah.com.

Delshah closes on $112M assemblage in Morningside Heights

Five months after raising $102 million on the Israeli bond market, Michael Shah’s Delshah Capital scooped up five adjacent Beaux Arts buildings in Morningside Heights.

Delshah paid $111.5 million for the buildings at 30 Morningside Drive in what the developer told The Real Deal was the firm’s largest transaction to date. The seller was Mount Sinai St. Luke’s Hospital, which will relocate hospital services at the site, allowing Delshah to convert the properties into high-end rental apartments.

According to Shah, the company went into contract on the property last year, and spent the next several months negotiating details, such as its ongoing relationship with Mount Sinai, which will continue to occupy neighboring buildings within the same tax lot as 30 Morningside.

The deal closed Monday.

Earlier this year, Delshah raised more than $102 million by issuing bonds on the Tel Aviv Stock Exchange. The deal was backed by the landlord’s portfolio of New York City assets.

According to Shah, about $30 million of bond proceeds went into the acquisition, along with $20 million of developer equity. Bank of the Ozarks provided a $60 million first loan and Square Mile provided a $17.5 million mezzanine loan.

Delshah is currently in the process of submitting plans to the city’s Department of Buildings and Landmarks Preservation Commission; once plans are approved, the developer will look to raise $138 million in construction financing, Shah said.

Pending the necessary city approvals, Delshah plans to carve out 200 rental units on the site, which is located a block south of Columbia University and overlooking Morningside Park.

The company’s portfolio includes more than 1 million square feet, valued at $720 million, including 12 residential buildings with a total of 1,200 apartment, as well as six retail buildings.

At 30 Morningside, two of the five buildings are landmarked and Delshah plans to renovate the exterior of the buildings and upgrade the interior. “The whole development will be contextual; we can change the insides but the facades will stay the same,” Shah said.

He said the low basis paved the way for a rental development.

At 260,000 square feet, the site traded for $420 per foot. The total cost, including the acquisition and renovation, will be $250 million, or under $900 per foot, Shah said. “You can’t buy a building for less than that.”

Shah is also bullish on the area, and said 30 Morningside would compete with other high-end rentals in the neighborhood.

Enclave at the Cathedral, the Brodsky Organization’s 428-unit rental development at 400 West 113th Street, currently has studios through two-bedrooms, with prices ranging from $2,626 to $5,030 a month, according to StreetEasy.