NEW YORK CITY—Locally-based Delshah Capital has acquired a storied six-story walkup property on the Lower East Side from Trikupa Realty, a Florida-based real estate investment firm, for $18.9 million.
Delshah Capital reports it plans to embark on a capital improvement program at the 138 Ludlow St. property that currently features 27 rental apartments and retail space on the ground floor. The circa early 1900s property includes one, two, and three-bedroom layouts, and two tenants currently occupy the retail space.
The capital improvement program's goal is to unlock the property's value similar to other projects launched at several of its other Lower East Side properties. The program calls for the addition of luxury finishes to the building and the individual apartment units.
The building's repositioning will also include infrastructure improvements, such as upgrading the new roof and making common area improvements with best-in-class finishes. 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. Delshah Capital did not provide any projected cost for the capital improvements.
Michael DeCheser, senior managing director of Cushman Wakefield, represented both the buyer and the seller in the transaction.
“Despite its good bones and excellent location, this building hasn't yet been positioned to realize its full potential for value,” says 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,” adds 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.”
Earlier this month, Delshah Capital closed on a $130-million loan for the conversion of 130 Morningside Drive into a luxury residential property.
Since its inception, Delshah Capital has grown its equity value from approximately $15 million to more than $327 million, and currently owns a portfolio of more than 2 million square feet valued at more than $80 million that is expected to grow to more than $1 billion with projects under development. The current portfolio, predominantly based in Manhattan, contains 17 real estate assets that include approximately 1,200 residential rental units, 10 retail units and three non-performing loans.
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.
John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
