Delshah Capital, the private equity and asset management real estate company led by Michael Shah, has once again made a comprehensive acquisition of multi-family properties. The company paid Quality Capital USA $36.9 million for five residential buildings west of Central Park in Manhattan's Upper West Side, according to property records filed on Thursday.
The first group of six-storey apartment buildings is located at 3-5 West 108th Street and 7-9 West 108th Street. These two adjacent buildings comprise approximately 48 residential units in total, with market-rate and rent-stabilised units, according to records from the New York City Department of Finance.
The second group of properties lies eight blocks south and comprises a total of around 99 units at 4 Manhattan Avenue, 8 Manhattan Avenue and 10-16 Manhattan Avenue. Michael Shah and Delshah Capital are thereby continuing their strategy of acquiring high-quality residential properties in sought-after locations.
Background to the transaction and Delshah's activities
Delshah's current purchase represents a price reduction of over $20 million compared to the portfolio's last sale in 2018, when Quality Capital USA paid the Orbach Group a total of $57 million across five transactions. Orbach had acquired the buildings between 2013 and 2015 for a total of $36.15 million. This highlights the dynamic development of property prices in this segment over the years.
Delshah has made a number of significant acquisitions this year. Earlier this month, Delshah acquired three mixed-use residential properties in Brooklyn's Williamsburg neighbourhood for $128 million. Three months prior, the company acquired a 142-unit multi-family property in the same neighbourhood for $76 million. In February, Delshah divested the Park Hill Apartments complex in Staten Island for $364.7 million. This sale coincided with reports that the company intended to enter the Class A office market through an already agreed deal of $135.7 million with A.M. Property Holding Corporation for the 24-storey office component of Tishman Speyer and GIC's CitySpire tower.
Spokespeople for Delshah and Quality Capital were not immediately available for comment on this transaction.
- —Location of acquired properties: Upper West Side, Manhattan, New York City.
- —Total transaction volume: $36.9 million.
- —Number of buildings acquired: 5.
- —Previous sale in 2018: $57 million to Quality Capital USA.
