A London-based financial institution is in contract to scoop up a mixed-use building in the Meatpacking District for $21 million, records show.
BNF Capital, through the entity Ninthview, is slated to purchase the 3-story building at 58-60 Ninth Ave., which has retail on the ground floor and residential apartments above, as part of a joint bankruptcy proceeding with a separate property a few blocks away, according to federal court documents filed in the Southern District of New York last week.
The current owner of the building, between West 14th and West 15th streets, is Delshah Capital, which filed for Chapter 11 bankruptcy protection after defaulting on a $28 million loan tied to both 69 Gansevoort St. and 58-60 Ninth Ave., records show.
Delshah, which is based near Union Square, bought the buildings in 2012 and 2013, respectively, for a combined $26.8 million, according to deeds from that time. Both retail units on the ground floor and lower level of 58-60 Ninth Ave. are currently vacant, while two out of the three apartments are occupied, records show. And 69 Gansevoort St. is entirely vacant.
As part of the bankruptcy protection agreement, Delshah Capital will retain a $6.7 million judgment against one of its former tenants at 58-60 Ninth, Free People — the Bohemian-chic apparel brand that’s part of Urbn’s global portfolio — after the retailer reportedly broke its lease agreement and failed to pay rent during the pandemic. In 2022 a federal judge ruled that Free People was on the hook for $13 million in back and future rent for the 6,800-square-foot storefront, Crain’s reported at the time.
Nic Fallows, director of BNF Capital, signed on behalf of the buyer, while Michael Shah, CEO of Delshah Capital, signed on behalf of the seller, records show. The pending transaction was first reported on by PincusCo. A closing date is slated for October, according to court documents.
Shah told Crain’s the agreement was a “win-win situation.”
Representatives for BNF Capital did not respond to a request for comment on its plans for the building by press time. The firm also owns 43 Crosby St. in SoHo.
Separately, 69 Gansevoort St. is in contract to be purchased by a different buyer, an individual whose capital is managed by Iconiq, for $9.3 million, records show.
