NEW YORK CITY-Real estate investment firm DelShah Capital LLC has completed the purchasing transaction for the 17 remaining unsold residential and seven commercial units in the Sunrise Terrace luxury condominium complex at 31-32 Union Street, Flushing, Queens, which has a total of 32 residential units. DelShah’s principal Michael Shah tells GlobeSt.com that the company purchased the first mortgage on the mixed-use building from China Trust Bank for $5.4 million, and then worked through a foreclosure litigation against previous owner Paramount Management Corp. and five junior creditors, including Grand Pacific USA, private lender Golden Eagle and other private investors in the Flushing community.
The motivation here, Shah says, was the quality of the property. “The building was beautifully built and it was one of the better developed buildings in the area,” he says. DelShah won the foreclosure auction at $3.7 million dollars and is now marketing the residential and commercial units with Distinct New York and Prudential Douglas Elliman. “Number two, we were in at a very good basis, about $190 per buildable square foot, and number three, there was a complicated legal fight going on, and that’s what we are really, really good at resolving.”
Now, the company is in the process of repositioning and rebranding the property. The units will be upgraded to feature high-end bathroom fixtures, stainless steel kitchen appliances, wood floors, washer/dryers and stone countertops. The lobby will feature improvements such as marble floors and boutique hotel-style hallways.
The building has two- and three- bedroom units ranging in size from 1,000 square feet to 1,400 square feet, ranging from $439,000 to $652,500. Commercial condos on the ground floor, with access on Union Street and 31st Drive, range in size from 650 to 2,400 square feet, starting at $229,000 to $899,000.
From the time of the foreclosure auction, Shah says the firm received five unsolicited offers on units. “The Queensboro Public Library also reached out to us to buy all the commercial space, and this is without us doing a thing,” he says. “The demand in the community for these units was really high.”
The building is located in close proximity to Kissena Park, the Queens Botanical Garden, the Main Street stop on the 7 train and the Long Island Rail Road. Shah says the deal is also part of the company’s larger strategy. “We buy a lot of non-performing debt, particularly during the recession because we decided that would be the best way to invest into real estate,” he says. “We have an 1,800-unit multifamily portfolio, and since 2008, we have bought $40 to $50 million worth of non-performing debt and worked out or foreclosed it.”
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