Relaunch of Flushing Condominium
Excerpt from The Real Deal
By David Jones, The Real Deal
DelShah Capital, led by investor Michael Shah, has officially re-launched the Sunrise Terrace Condominiums in Flushing, Queens, after acquiring the unsold shares at the stalled complex at a foreclosure auction in July. Victor Jung from Distinct New York was enrolled to rebrand, reposition and remarket the property.
DelShah, after acquiring the project’s original $9.6 million senior mortgage from ChinaTrust in November 2009, spent nearly two years working to take over the deal after negotiating a complex series of legal hurdles and direct negotiations with several creditors involved in the project.
Delshah acquired the property’s $6.9 million loan balance for $3.7 million in a foreclosure auction, after a judgment was issued against the previous owners, Paramount Management, in April.
Sunrise Terrace has operated in a tough submarket in Flushing, competing against larger rivals like SkyView Parc and other new condominiums.
Distinct New York, an affiliate of DelShah, is the exclusive marketing and sales agent along with Prudential Douglas Elliman.
Victor Jung, executive vice president at Distinct, said demand is strong for the newly positioned condos.
“It’s a great, unique product,” Jung said. “This property has Trump-like finishes for that community.”
The units have Whirlpool stainless steel kitchen appliances, Techline kitchen cabinets, stone countertops, Kohler bathroom fixtures, washer dryer units and optional parking spaces.
The 41-unit property, at 31-32 Union Street, is offering 17 units for sale ranging from 1,000 to 1,400 square feet and $439,000 to $652,500. Fifteen of the property’s residential apartments were previously sold.
Update: 17 units sold out at record 90 day pace, for $9.350MM through the marketing efforts of Victor Jung and the sales team at Distinct New York.
The property’s commercial condos range from $229,000 to $899,000 and range in size from 650 square feet to 2,400 square feet.
DelShah owns a total of 1,750 multi-family units across New York, part of his firm’s 2 million-square-foot commercial real estate portfolio.
Just last month, DelShah purchased a mixed-use multi-family complex at 1356 First Avenue, between 72nd Street and 73rd streets for $9.1 million. The complex is also the home of Petaluma Restaurant considered one of the top Italian restaurants on the Upper East Side. Brokers on the deal where Gunthrie Garvin and team at Distinct New York, lead by Victor Jung.
DelShah was an original investor at the Setai at 40 Broad Street in Lower Manhattan. In late December 2010, the firm filed suit to block Anglo Irish Bank from transferring the deed at 40 Broad.