Sabet Group signs $15.2M refi with Santander Bank for 20-unit walkup in Alphabet City

Sabet Group through the entity 24 Avenue A LLC as borrower signed a refi loan with lender Santander Bank valued at $15.2 million for the 20-unit walkup building (C6) at 24 Avenue A in Alphabet City, Manhattan.
The deal closed on September 13, 2022 and was recorded on September 20, 2022. The prior lender was Signature Bank which held debt that had an original loan amount of $9.8 million. The property has 15,308 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $992 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The owner bought the property on February 8, 2019, for $15.8 million. The signatory for Sabet Group was Alfred Sabetfard. The signatory for Santander Bank was Steven J. Robinson.

Prior sales and revenue

The owner according to the Department of Housing Preservation and Development is Peter Tran, head officer. The business entity is 24 Avenue A Llc.

The property

The 24 Avenue A parcel has frontage of 57 feet and is 60 feet deep with a total lot size of 3,450 square feet. The zoning is R7A which allows for up to 4 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $2.4 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has received five DOB violations, 13 housing violations, and $1,300 in OATH penalties in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The neighborhood

In Alphabet City, the majority, or 56 percent of the 12.9 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 32 percent of the space. In sales, Alphabet City has had very little sales volume relative to other neighborhoods with $217.3 million in sales volume in the last two years. For development, Alphabet City has had very little major development activity relative to other neighborhoods.It had 96,140 square feet of commercial and multi-family construction under development in the last two years, which represents 0.74 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of seven of the 21 commercial properties representing 132,945 square feet of the 362,982 square feet. The largest owner is Kushner Companies, followed by Gatsby Enterprises and then Sassouni Management.
There are no active new building construction projects on this tax block.

The majority, or 43 percent of the 362,982 square feet of built space are walkup buildings, with elevator buildings next occupying 42 percent of the space.

The borrower

The PincusCo database currently indicates that Sabet Group owned at least 32 commercial properties in New York City with 504,477 square feet and a city-determined market value of $137 million. (Market value is typically about 50% of actual value.) The portfolio has $301.6 million in debt, with top three lenders as Signature Bank, Citibank, and Dime Community Bank respectively. Within the portfolio, the bulk, or 59 percent of the 504,477 square feet of built space are walkup properties, with hotel properties next occupying 26 percent of the space. They are all located in Manhattan.

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