Delshah Capital has landed a $180 million refinancing for its luxury rental conversion project at 30 Morningside Drive in Morningside Heights, the developer announced Monday.
Arbor Realty Trust funded the new loan, which takes out $130 million in construction financing provided by Square Mile Capital in 2017. It will also allow Delshah to redeem a $50 million bond series it issued on the Tel Aviv Stock Exchange that year.
Delshah founder and CEO Michael Shah said the company was able to execute the bond repurchase program as other U.S.-based TASE bond issuers defaulted or were “downgraded, or delisted as a result of 2020’s challenges.”
The Morningside project project received temporary certificates of occupancy for its 205 residential units last month, and has brought all amenities online — including a gym, bar, library, children’s playroom and billiards room, according to its website. A disclosure regarding the financing was also filed with the Tel Aviv Stock Exchange on Sunday.
Read more
Popular
New York
Delshah closes on $112M assemblage in Morningside Heights
Development
New York
Delshah raises $52M in Tel Aviv for $250M Morningside Heights project
Popular
New York
Delshah close to securing $130M construction loan for Morningside project
Together with a $174 million refinancing for the Park Hill apartment complex in Staten Island last May, the developer has now closed more than $350 million in refinancing since the start of the pandemic.
While coronavirus has put some pressure on New York City’s rental market, Arbor expressed confidence in the property, which previously consisted of five medical facility buildings developed for St. Luke’s Hospital in the 1890s.
“We were very comfortable with asset and sponsor quality, so we were happy to provide [Michael Shah] with the flexibility necessary to lease up Morningside at his pace,” said Arbor vice president Alexander Kaushansky, who arranged the financing.
With new financing locked in for its current portfolio, Delshah is now looking to take advantage of opportunities presented by market dislocation and the pandemic. “We believe now is the time to acquire in New York City, and we expect to be quite active in acquisitions and equity restructurings,” Shah said.