JV Snaps Up Philip Chong’s SoHo Office Building for $36M via Deed-in-Lieu
The JV purchased the debt on the property at a big discount
By Emily Davis May 14, 2026 2:26 pm
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A joint venture has taken over a large SoHo office asset for $36 million, according to property records made public Thursday and sources familiar with the trade.
The transaction involved a discounted note sale to the JV followed by a conveyance of the deed-in-lieu. Meridian Capital Group’s Chirag Doshi brokered the deal on behalf of lender Shanghai Commercial Bank and the joint venture, sources said.
The 103,500-square-foot assemblage at 261-267 Canal Street, also known as 21-23 Howard Street, is made up of two separate office buildings connected by a defunct breezeway and basement corridor. Both offer ground-floor retail space.
HCRE’s Philip Chong was the previous owner of the property, and also the owner and founder of Canal Street Market, which closed in early 2025.
The debt on the property was roughly $60 million, sources said, and the asset ultimately sold to the JV for $36 million. The property was conveyed to the JV via deed-in-lieu.
New ownership includes Josh Rahmani and Ebi Khalili’s Empire Capital Holdings, via the entity Empire 261 Canal. Khalili was named managing member of the venture in the deed. Retail executive Husein Jafferjee and Andrew Rosen, co-founder of fashion retailer Theory, joined in the deal through the entity Canon Howard RE Partners.
L.A.-based private equity firm Carolwood, led by Adam Rubin and Andrew Shanfeld, were also involved as buyers through the entity Carolwood Howard, alongside commercial broker Jeremy Aidan, using the LLC 1-21 Howard Aidan TC.
The six-story boutique building at 21 Howard Street was subject to a Department of Buildings investigation in April 2026 after a large section of masonry wall on the rooftop collapsed, sending debris into empty commercial space below. The office building at 261-267 Canal Street spans six stories, and once housed carriage makers Studebaker Brothers Manufacturing Company.
Doshi declined to comment on the transaction. Spokespeople for Empire Capital, Carolwood, Canon Howard RE Partners and Aidan did not immediately respond to requests for comment. Chong could not be reached for comment.
Emily Davis can be reached at edavis@commercialobserver.com.
