NEW YORK, Feb. 21, 2012 /PRNewswire/ --Michael Shah,principal and chief executive officer of DelShah Capital, LLC (DelShah), the real estate investment, debt acquisition, development and management company announced they have resolved two formerly bankrupt New York City properties and brought positive conclusions to them in the last twelve months.
According to Mr. Shah, "Every distressed opportunity is different. And success is defined in different ways. Here are two examples of positive outcomes from bankruptcies completed in the past year in which the end result was ownership of the asset and great returns on our credit investments. DelShah excels at processing complicated legal and financial situations."
In Harlem, DelShah Capital has just purchased 101 West 126th Street through a New York State Bankruptcy Court ordered sale for $11,240,000. In 2010, a DelShah affiliate purchased the non-performing senior mortgage note for the 32-unit multi-family apartment building, with a ground floor commercial space, at the corner of West 126th Street and Lenox Avenue. DelShah was poised to purchase the property in May 2011 when the debtor declared bankruptcy. DelShah was able to reach agreement with the debtor and junior creditors, resolve the bankruptcy and take title in just 9 months.
From March 2011 through the present, DelShah Management undertook a full renovation to the building with complete upgrades to over 50% of the units. Prior to DelShah's involvement the building was at less than 60% occupancy under the control of a court appointed receiver, but it is now fully occupied with an increase in the rent roll from $635,000 to over $1,000,000 annually. The commercial space has been leased to Sun of May, LLC for use as a food and beverage venue scheduled to open in Spring 2012.
At 639 West 46th Street, the former home of H & H Bagels, in Manhattan, DelShah Capital purchased the senior note in May 2010 and began a foreclosure on the building. Helmer Toro, the owner of 639 West 46th Street, then filed for bankruptcy. DelShah and other creditors converted the case into Chapter 7 liquidation. In February 2012, the property was sold to the second mortgagee MKF Management and DelShah Capital received payment in full on its senior lien position, inclusive of default interest at 24%.
Michael Shah stated, "These deals exemplify DelShah's ability to resolve conflict among lenders and owners in an expeditious manner which then benefits the property and increases its value."
About DelShah Capital, LLC
DelShah Capital is a full-service real estate and CRE debt acquisition, development and management company that owns and operates 1,750 multifamily units as a part of its 2-million square foot commercial and residential real estate portfolio that is spread through the five boroughs of New York City. DelShah has been very active in purchasing non-performing CRE loans in the New York region, having completed $40 million in acquisitions since the recession began. The company has expertise in identifying, financing, managing, rebranding and exiting those investments on behalf of institutional clients and for its own portfolio.
DelShah specializes in the purchase and foreclosure of non-performing commercial mortgages, including resolving bankruptcies and complex litigation on the acquisition side. The firm integrates rigorous financial and legal structuring with professional real estate asset management. This combination of disciplines makes DelShah Capital a unique operating partner. For more information on DelShah's capabilities please contact, 212-213-8777 or visit www.delshah.com.
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SOURCE DelShah Capital, LLC
