Sabet Group signs $20.2M refi with Signature Bank for 20-unit walkup in East Village

Sabet Group through the entity 92 Second Ave LLC as borrower signed a refi loan with lender Signature Bank through the entity Signature Bank valued at $20.2 million for the 20-unit residential walkup building (C7) at 92-94 2nd Avenue in East Village, Manhattan.
The deal closed on July 22, 2022 and was recorded on July 29, 2022. The prior lender was Oritani Bank which held debt that had an original loan amount of $14 million. The property has 19,894 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $1,015 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 June 10, 2016, for $19 million. The signatory for Sabet Group was Alfred Sabetfard.

Prior sales and revenue

The owner according to the Department of Housing Preservation and Development is Peter Tran, head officer. The business entity is 92 Second Ave Llc. The 19,894-square-foot property generated revenue of $981,345 or $49 per square foot, according to the most recent income and expense figures.

The property

The 92-94 2nd Avenue parcel has frontage of 48 feet and is 100 feet deep with a total lot size of 4,850 square feet. The zoning is R7A which allows for up to 4 times floor area ratio (FAR) for residential with inclusionary housing. The property is in the East Village / Lower East Side Historic District. The city-designated market value for the property in 2022 is $5.3 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 one DOB violation, $1,250 in ECB penalties, 10 housing violations, $2,300 in OATH penalties, and one housing litigation 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 block

On this tax block, PincusCo has identified the owners of 19 of the 45 commercial properties representing 201,982 square feet of the 439,414 square feet. The largest owner is Croman Real Estate, followed by Viking Management and then New York Police Department. There are two active new building construction projects totaling 16,514 square feet. The largest is a eight-unit, 8,331-square-foot R-2 building developed by Daniel Toledano with plans filed April 19, 2017 and it has not been permitted yet.The second largest is a eight-unit, 8,183-square-foot R-2 building developed by Daniel Toledano with plans filed May 11, 2020 and it has not been permitted yet.

the majority, or 78 percent of the 435,322 square feet of built space are walkup buildings, with specialty buildings next occupying 10 percent of the space.

The borrower

The PincusCo database currently indicates that Sabet Group owned at least 30 commercial properties in New York City with 467,783 square feet and a city-determined market value of $126.7 million. (Market value is typically about 50% of actual value.) The portfolio has $264.6 million in debt, with top three lenders as Signature Bank, Citibank, and Dime Community Bank respectively. Within the portfolio, the bulk, or 56 percent of the 467,783 square feet of built space are walkup properties, with hotel properties next occupying 29 percent of the space. They are all located in Manhattan.

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