Offset Capital Completes $1.8MM Pref Equity Investment in The Broome Hotel in New York

NEW YORK, NY — Offset Capital announced its latest transaction, a $1,775,000 pref equity investment in The Broome Hotel, located at 431 Broome Street in Manhattan. This investment underscores Offset Capital's commitment to innovative hospitality financing solutions.

The Broome Hotel, an 8,803 square-foot boutique establishment featuring 14 keys, was seeking additional capital to convert under-utilized space into a new restaurant/bar on the property's ground floor, enhancing the hotel's guest experience and revenue potential.

Despite the buildout of the food and beverage (F&B) space not being included in the initial business plan, the Offset team worked closely with the hotel's sponsor to tailor a comprehensive capital stack solution featuring a full accrual on the pref. In addition to the F&B buildout, the pref investment will fund senior debt service, working capital, and pre-dev costs related to adding four additional rooms to the hotel.

The investment in the Broome Hotel is part of Offset Capital's broader strategy to provide flexible financing solutions for middle-market real estate entrepreneurs. The company offers a range of full capital stack solutions including senior bridge loans, mezzanine financing, and preferred equity investments. With a focus on speed, certainty of execution, and customization, Offset Capital is uniquely positioned to help borrowers navigate the financial challenges of today’s real estate market.

For more details about this transaction and to read about our innovative approach to commercial real estate investments, click here.