DelShah Capital Acquires 34 Berry Street From LCOR for $76M

Why It Matters

The purchase underscores Delshah's renewed balance‑sheet strength and confidence in Williamsburg’s sustained rental demand, while highlighting continued institutional appetite for high‑quality NYC multifamily assets.

Key Takeaways

• Delshah paid $76M, up from LCOR's $53M purchase.
• 34 Berry Street is a 142‑unit Class A multifamily building.
• Ares provided $62.25M financing, reflecting strong institutional capital.
• Williamsburg remains a high‑demand, live‑work‑play submarket.
• New executive Michael Bacon joins to boost capital markets.

Pulse Analysis

The $76 million deal for 34 Berry Street marks a significant premium over LCOR’s 2024 purchase price, signaling Delshah Capital’s aggressive repositioning after a recent balance‑sheet restructuring. By targeting a well‑located, Class A asset in Williamsburg—a neighborhood known for its vibrant live‑work‑play environment—Delshah aims to capture stable cash flows from a market that consistently outperforms broader New York City rental trends. The acquisition also expands the firm’s multifamily footprint, complementing its existing holdings in Manhattan’s Morningside Heights and Downtown Brooklyn, and aligns with its broader strategy of diversifying across asset classes, including the recent $135.7 million CitySpire office tower purchase.

Financing the transaction with $62.25 million of debt from Ares highlights the depth of institutional capital flowing into New York’s high‑quality rental sector. Lenders are increasingly comfortable extending leverage on properties with strong tenant demand, robust operating histories, and clear value‑add opportunities. Delshah’s decision to invest in capital improvements—upgrading lobbies, common areas, and individual units—reflects a broader industry trend of enhancing resident experience to justify rent growth and improve asset resilience amid tightening supply. The involvement of JLL’s advisory team further underscores the importance of sophisticated market intelligence and execution capabilities in securing favorable terms.

For Williamsburg, the transaction reinforces the borough’s status as a premier multifamily submarket, where developers and investors continue to compete for limited inventory. Delshah’s entry, bolstered by the addition of seasoned executive Michael Bacon, positions the firm to capitalize on future acquisition pipelines and potentially explore development opportunities. As the city’s rental market remains tight, assets like 34 Berry Street are likely to deliver attractive yields, making them focal points for both domestic and foreign capital seeking stable, inflation‑hedged returns in a post‑pandemic urban landscape.

Deal Summary

DelShah Capital announced the acquisition of the 142‑unit multifamily property at 34 Berry Street in Williamsburg, Brooklyn, from LCOR for $76 million. The deal, financed with $62.25 million of acquisition financing from Ares, expands DelShah’s portfolio of market‑rate assets. The transaction was brokered by JLL.