June 01, 2013 07:00AM
DelShah Capital, a leading buyer of distressed properties in New York City, has formed DelShah Lending, the company announced last month.
The new lending arm will provide mezzanine and bridge loans up to $50 million at an interest rate of 12 percent for bridge funds and a rate “in the high teens” for mezzanine funds; borrowers will receive financial advice as well, CEO Michael Shah told The Real Deal.
“We’re looking to lend into special situations, messy situations where maybe there is a zoning problem or a partnership dispute … something going on that makes conventional financing harder to get,” Shah said.
Since the downturn, DelShah Capital has emerged as a major player in scooping up debt on properties in or facing foreclosure. Acquisitions include 22 Renwick Street, 55 Gansevoort Street and 11 East 36th Street.
Shah has borrowed more than $250 million to finance his acquisitions, which he told TRD made him feel comfortable getting into the lending business.
“I’ve been one of the biggest buyers of non-performing debt, so we certainly know what to do when loans go bad,” he said.
DelShah Lending has three employees and shares office space with DelShah Capital at 114 East 14th Street.