Delshah Drops $85M On Two Williamsburg Rental Buildings

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Delshah Capital is expanding its Williamsburg footprint with the purchase of two mixed-use residential buildings on Grand Street for $85.3 million.

Michael Shah’s firm snapped up 456 Grand Street for $39.5 million, the firm announced. The six-story 75,000-square-foot property includes 52 apartments, two retail spaces and a 50-space parking garage.

The seller, Bronstein Properties, bought the building in 2018 for $43 million, according to property records. It has a 421-a tax abatement through 2030. The site was developed in 2015 as part of the city’s PlaNYC Brownfield Cleanup Program.

Delshah also bought 227 Grand Street, a mixed-use property with 41 apartments, 10 retail spaces and 21 parking spots developed in 2013 by Toby Moskovits. The 41-unit property was sold in 2022 at a bankruptcy auction to its mezzanine lender after Moskovits and her business partner, Michael Lichtenstein, spent three years in court trying to stop the sale.

Delshah financed the acquisitions with a $60.5 million loan from Prospect Ridge.

“Both properties are high-quality assets that complement our existing portfolio and align with our investment strategy of acquiring well-located multifamily and mixed-use properties in fundamentally strong neighborhoods,” Michael Shah said in a statement.

Delshah recently bought a 142-unit market-rate rental building at 34 Berry Street for $76 million. Shah said at the time that the firm had restructured its balance sheet and was in a position to grow again, Commercial Observer reported.

Shah’s firm is not just expanding on the multifamily front. In May, it teamed up with A.M. Properties and REALM to buy the 24-floor office condominium inside CitySpire from Tishman and GIC for $135.7 million.

Days earlier, Delshah sold the 1,103-unit Park Hill Apartments complex in Staten Island to a joint venture of Arker Companies, L+M Development Partners and LIHC Investment Group for $364.7 million.