Delshah Capital, a full-service commercial real estate investment and property management company, announced today that it has purchased 138 Ludlow Street – a classic, early 1900s, six-story walk-up, located in the heart of the Lower East Side.
The purchase price was $18.9 million for the building, which includes 27 rental apartments as well as a highly desirable sidewalk-level retail floorplate with approximately 45 feet of frontage on Ludlow Street. The apartments represent a diverse mix of one, two and three-bedroom layouts, and the retail space is occupied currently by two tenants.
With a track record for successfully implementing business plans to unlock value at several other Lower East Side properties, Delshah’s business plan for 138 Ludlow is to mirror the level of market-leading finishes at its other properties – including nearby 130 Orchard Street, which Delshah repositioned into one of the top multifamily properties in the neighborhood.
The building’s repositioning will include infrastructure improvements, such as upgrading the new roof and making common area improvements with best-in-class finishes that will benefit all residents. In the building’s market-rate and vacant apartments, Delshah will upgrade kitchen appliances; add washers, dryers and wine chillers; refurbish bathrooms, and install new flooring.
In addition to the building’s existing quality and potential for transformation, its location, itself, represents a significant driver of value. At the intersection of Ludlow and Rivington Streets, 138 Ludlow is the epicenter of a sub-market rich with historic significance, and which now features a vibrant mix of old-world flavor with contemporary art, culture, dining, and entertainment.
“Despite its good bones and excellent location, this building hasn’t yet been positioned to realize its full potential for value,” said Michael Shah, Delshah’s founder and managing partner. “We are sitting on a gem, and with our proven ability to transform properties and streetscapes we are excited to deliver the next ‘newest and nicest’ building to the Lower East Side.”
“We love this street and the Lower East Side,” added Rohun Khanna, senior associate at Delshah. “By infusing additional equity through our purchase of 138 Ludlow, we plan to make this specific block one of the city’s most desirable spots for anybody seeking a true melting pot of New York City culture and excitement.”
The seller is Trikupa Realty, a Florida-based investment group. Michael DeCheser, senior managing director, Cushman Wakefield, represented both parties.
In addition to 130 Orchard, Delshah has successfully executed plans to unlock value at 100 Christopher Street, 101 West 126th Street and 1356 1stAvenue. Other significant transactions for the firm, over the last year, include the purchase and conversion of 30 Morningside Drive as well as the execution and delivery of 16,763 SF to Galerie Perrotin for the relocation of their flagship New York City gallery from Madison Avenue to 130 Orchard Street. The firm also is relaunching its luxury condominium development at 225 West 17th Street in Chelsea.
About Delshah Capital
Delshah is a full-service, vertically integrated commercial real estate investment firm, specializing in acquiring, developing, and managing multi-family, retail, and office properties or commercial real estate (CRE) loans throughout New York City. Founded by Michael Shah in 2006, the firm now consists of over 640 professionals within its CRE investment and property management groups. Delshah utilizes a fundamental, value-driven approach towards its investments and has expertise in identifying, structuring, and managing real estate investments on behalf of institutional clients as well as for its principal account.
Since its inception, the firm has grown its equity value from approximately $15mm to over $327mm, and currently owns a portfolio of over 2mm square feet valued at more than $80mm, which is expected to grow to over $1bn with projects under development. The current portfolio contains 17 real estate assets, composed of 1,200 residential rental units, 10 retail units and three non-performing loans primarily focused in Manhattan.
