NEW YORK CITY—Delshah Capital, LLC has closed on a $130-million construction loan for its conversion of a former medical facility complex in Morningside Heights into a luxury residential property.
Real estate investment and property management firm Delshah Capital secured the financing with Square Mile Capital Management. Michael Delshah, principal and CEO of Delshah Capital, previously told Globest.com that the conversion project at 30 Morningside Drive, including acquisition and development costs, would total approximately $255 million.
Eastern Consolidated managing director Adam Hakim and James Murad, director, Capital Advisory Division, helped arrange the financing. The complex will be converted from its prior medical use to a 205-unit, 200,215-square-foot luxury rental complex.
The five building complex is currently undergoing a complete as-of-right gut renovation. Interior demolition and abatement have been completed and the remaining renovation work at the former Mount Sinai Hospital properties is expected to take two years, according to Delshah Capital.
Constructed between 1896 and 1928, the site consists of five architecturally significant, Ernest Flagg designed, pre-war buildings (including the carriage house), overlooking Morningside Park and Upper Manhattan.
“We are thrilled to have closed this loan which completes the financing necessary for the conversion and repositioning of this prime Manhattan site. We would like to extend our appreciation to Square Mile Capital Management for its collaboration and partnership, as well as Eastern Consolidated for arranging this loan with Square Mile,” Delshah says.
Delshah Capital currently owns a portfolio of more than 2 million square feet valued at more than $800 million, which the firm states is expected to grow to $975 million with projects under development. The current portfolio, primarily located in Manhattan, contains 17 real estate assets, comprised of 1,200 residential rental units, 10 retail units, and a non-performing debt portfolio.
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
