Broome Street
This is a straightforward refinance of a mixed-use asset in one of Manhattan's most desirable and supply-constrained submarkets, SoHo, replacing a prior $14.5M Israel Discount Bank loan with a $19.9M Citizens Bank facility — representing a roughly 37% increase in leverage that warrants attention. The sponsor, Sabet Group, has a credible track record with over $100M in volume across 7-8 deals, lending confidence to their operational capability, though the leverage step-up suggests either capital extraction or value appreciation being monetized. SoHo mixed-use assets command premium valuations with strong retail and residential demand, and the neighborhood fundamentals support debt serviceability assuming stabilized occupancy. Citizens Bank is a reputable institutional lender, signaling the deal passed conventional underwriting standards. Overall, the deal presents moderate-to-good credit quality tempered by increased leverage and the absence of disclosed financials such as NOI, rent rolls, or occupancy data.
Deal Stats
Parties
Seller / Landlord
Sabet Group, led by Leor Sabet and Alfred Sabetfard, is an active NYC-based real estate ownership and investment firm with a demonstrated track record across mixed-use and multifamily assets, having transacted over $100M in deal volume across multiple properties. They are known as experienced operators in Manhattan's competitive mixed-use market.
Score Analysis
What this score means
A Grade B score indicates this deal qualifies for financing at up to 70% LTV, subject to full underwriting. Most deals at this level proceed to a term sheet within 2 business days.
Why this score
Sponsor Track Record
Sabet Group demonstrates proven execution across $100M+ in NYC mixed-use deals, reducing operational risk and suggesting competent asset management.
Leverage Step-Up
37% increase in loan amount ($14.5M to $19.9M) signals capital extraction or aggressive monetization without disclosed value-add, raising debt serviceability concerns.
SoHo Submarket Fundamentals
Supply-constrained Manhattan mixed-use neighborhood with strong retail and residential demand provides resilient revenue base and refinancing stability.
Lender Quality & Underwriting
Citizens Bank approval signals deal passed institutional underwriting rigor, reducing hidden credit defects and suggesting reasonable loan structure.
Missing Financial Transparency
Absence of NOI, rent rolls, occupancy metrics, or property financials prevents cash flow validation and debt coverage ratio analysis.
How to improve
The following actions could meaningfully improve this deal's Homage score. Each suggestion is based on the deal's profile, asset type, and current rating — addressing them before approaching a lender can increase approval likelihood and lower borrowing costs.
Disclose Stabilized NOI and DSCR
Publishing debt service coverage ratio and trailing/forward NOI would validate the 37% leverage increase and address credit quality concerns.
Clarify Use of Proceeds
Specify whether refinance funds deployed to capital improvements, operational reserves, or sponsor distributions; capital deployment drives grade confidence.
Provide Occupancy & Rent Roll Detail
Detailed tenant roster with lease expirations and rental rates would substantiate SoHo demand thesis and de-risk revenue assumptions.
