Delshah acquired the first and second mortgages and a judgement lien collateralized by 55 Gansevoort in March 2012 for $22.0 million. The purchase price represented a 22% discount to the combined $28.3 million par value of the positions acquired.Delshah recognized the opportunity to acquire an exceptionally well-located asset in one of Manhattan's fastest growing submarkets at a substantial discount.
The property consists of a prominent and historic five-story mixed use building (25,000 sq.ft.) located in the Meatpacking District. One of New York's most sought after neighborhoods, the Meatpacking District is characterized by strong commercial demand and substantial barriers to entry. Amenities such as the nearby Whitney Museum and High Line Park which generates +4.0 million visitors annually drive substantial visitorship and foot traffic.
The Property was vested in a complex ownership structure and mired in financial and operational distress. Delshah utilized its expertise to resolve impediments created by a complex ownership regime and gained control of the collateral in July 2012. Subsequent to acquiring the collateral, Delshah implemented professional management and a capital improvement plan to renovate and reposition the asset. A long-term lease with Restoration Hardware was executed in July 2015. Delshah has retained ownership of the asset.