NEW YORK CITY-DelShah Capital, LLC, a real estate developer, manager and debt acquisition firm, has formed DelShah Lending, the company announced Tuesday. The new entity will work to originate short- and long-term hard money, bridge and mezzanine loans throughout the city.
The time was right for the foray into lending because of the current success of commercial real estate, DelShah CEO Michael Shah tells GlobeSt.com. “New York real estate values are hitting all time peaks, and in a rising market, you can make better risk adjusted returns in debt than in equity,” he says. “Increasingly, assets are trading for more than we value them. The lending platform allows us to keep our exposure at the limits we like while still making a good return.”
In addition, he says in the announcement, “Over the past few years, it has been difficult for many lenders to understand the complexities of special situations, price litigation risk, and multiparty deals with many possible outcomes; as a consequence, if they lend at all, it will be at very low loan to cost structures. With DelShah Lending, we provide an opportunity to bridge that gap in the current marketplace.”
DelShah has an expertise in real estate special situations, including litigation, the announcement states. Rather than only supplying capital, DelShah also can advise clients on creating value and resolving distressed situations.
DelShah Lending will use its expertise in real estate special situations to provide investors with financing options, according to the announcement. “Over the past few years, it has been difficult for many lenders to understand the complexities of special situations, price litigation risk, and multiparty deals with many possible outcomes,” DelShah says. “As a consequence, if they lend at all, it will be at very low loan to cost structures."
The new lending group will offer capital between the 60% loan-to-value that bridge loans are currently available at in the market and the 85% most buyers are seeking. This includes, but is not limited to, short-term bridge financing, development projects, and distressed real estate situations, the announcement states.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
