Delshah Capital, led by Michael Shah, has announced the acquisition of three mixed-use residential properties in Williamsburg, Brooklyn. The total investment for this transaction amounts to US$127.8 million.
The acquisition occurred in two separate deals. Initially, the company acquired 227 Grand Street and 456 Grand Street for a combined US$85 million. The 456 Grand Street property benefits from a 421-a tax abatement, which does not expire until 2030. Delshah purchased 227 Grand Street from an affiliate of Hutton Capital. The property at 456 Grand Street was acquired from Bronstein Properties, which had purchased the building in 2018 for US$43 million.
The property at 456 Grand Street comprises 52 residential units, two retail spaces, and 50 parking spots and was sold for US$39 million. The building at 227 Grand Street, with 41 flats, 10 retail spaces, and 21 parking spots, changed hands for US$45.8 million. Although the two properties are only half a mile apart, they are separated by the Brooklyn-Queens Expressway and the Williamsburg Bridge on-ramps. A spokesperson for Bronstein Properties stated that the company, a third-generation family business with over 60 years of experience owning and operating multifamily properties in New York City, deemed the transaction appropriate after careful consideration as part of its ongoing portfolio management strategy.
As part of the second portion of the transaction, Delshah acquired the property at 452 Keap Street from Parkview Management for US$43 million. This five-storey residential building features 47 residential units.
Negotiations for these sales were handled by Aaron Jungreis, Ben Khakshoor, Alex Fuchs, and Eli Shayestehpour of Rosewood Realty Group on behalf of both parties. The acquisition was financed through a loan of US$60.5 million from Prospect Ridge. The buyer's detailed plans for the acquired properties were not immediately disclosed. Delshah and Prospect Ridge have not yet responded to requests for comment.
Michael Zaremski and Clayton Ross of JLL arranged the acquisition financing on behalf of Delshah. The 456 Grand building was originally constructed in 2015 as part of New York City's PlaNYC Brownfield Cleanup Programme.
