Signature, CCRE Lend $88M on Delshah’s $102M Acquisition of 28 Silvershore Assets

Meridian Capital Group arranged the sale and also negotiated the debt.

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Silvershore Properties has officially closed on the sale of 28 multifamily properties to Delshah Capital for $101.7 million. Delshah secured $88 million in senior and mezzanine acquisition financing from Signature Bank and CCRE, sources told Commercial Observer.

SEE ALSO: The Simple Secrets Behind a Complex Deal: Brokering a 28-building, $100 Million Sale

The deal closed late Friday afternoon.

Meridian Capital Group arranged both the sale and the financing. Rich Velotta and Abie Kassin represented both Silvershore and Delshah in the acquisition while Simon Rosenfeld, Rael Gervis and Craig Berger negotiated the debt.

The five-year debt comprises a senior loan with an interest-only component from Signature Bank and a fixed-rate, full-term interest-only mezzanine loan from CCRE, sources said. Officials at Meridian declined to identify or confirm the lenders.

“There were numerous moving parts associated with closing this transaction as it encompassed 28 different properties,” Rosenfeld told CO. “Meridian was able to add value and obtain the required proceeds by pairing an established bank with a favorably priced mezzanine lender. Further, the Meridian team from debt capital markets and investment sales worked seamlessly with both lenders, the borrower and third parties to achieve a streamlined closing.”

The Real Deal first reported that Delshah would purchase the then-unidentified properties for just over $100 million.

CO has learned that the 28 assets are located primarily in Bushwick and Bedford-Stuyvesant, but two assets are located in Downtown Manhattan. The portfolio totals 200,000 gross square feet and includes 210 residential units and 17 retail spaces.

The properties acquired include 808 Prospect Place, a 19-unit building with five commercial spaces in Crown Heights; 219 13th Street, a 25-unit building in Park Slope; and 41 Henry Street, a 20-unit building in the Lower East Side.

“This is highly unique transaction that took an incredible amount of balance and teamwork from all sides to get done,” Velotta said in prepared remarks. “In a market with declining transaction volume, this shows the power of Meridian’s sales and mortgage platform to operate together and perform for our clients.”

Officials at Delshah Capital, Signature Bank and CCRE could not immediately be reached for comment.