It was just a year ago that Silvershore Properties (also known as Dolphin Equities) picked up 101 Delancey St., a mixed-use building at Ludlow Street, for $7 million. Now co-owners Jason Silverstein and David Shorenstein are attempting a dolphin-like maneuver — flipping the property and tripling their investment.
The partners, who own about three dozen buildings all over the city, told the Real Deal they’re angling to sell the six-story residential property, with ground floor retail, for $20.5 million. More from the story:
(Silverstein said) the property warranted its new price tag thanks to a recent renovation of 12 of the building’s 20 apartments. Leases for the building’s five retail spaces on the ground floor, which account for 96 feet of frontage on Delancey Street, are also set to expire in the coming months, meaning that a new owner could attract a large retail tenant at significantly higher rents than the spaces are currently achieving. The second floor of the property, which currently consists of all free-market apartments, can also be converted to retail use under the building’s current zoning restrictions. Silverstein also pointed to the renewal program for the area around the nearby Seward Park, which is set to transform more than six acres of underutilized land into a mixed-use space with more than 1,000 units of housing as well as office and retail space. The renewal program, spearheaded by the city, is expected to draw a large number of residents to the neighborhood, which will, in turn, increase the value of the retail along Delancey Street, he said.
Local real estate insiders say there’s no doubt the building is worth more today than it was a year ago. But they are very skeptical that anyone will be willing to pay $20 million (yesterday’s story appears to be as much a PR move as anything else). According to the Real Deal, 14 apartments are market-rate, five are rent stabilized and one is rent controlled. According to StreetEasy, a three-bedroom unit was listed earlier this month for $4,000/month; a 2-bedroom was listed in the spring for $3350. Last year, a commercial tenant told us a “transition specialist” had been on site offering buyouts to rent-regulated residential tenants. Once rent regulated apartments are vacated, landlords are free to convert them to free-market units.
There are five commercial spaces at 101 Delancey; a Sprint store, the Happiness Deli and three vacant spaces, including a former “off track betting” location. The building borders Hotel Chantelle, the restaurant and club with a popular rooftop bar (translation: it’s not a good option for light sleepers).
In the spring, Silvershore Properties picked up 197 Madison St. for $3.3 million.