AllianceBernstein acquires 29 unsold commercial condos valued at $60.8M from Carlyle Group in Turtle Bay

AllianceBernstein through the entity AB 866 Plaza Nominee LLC acquired from the Carlyle Group through the entity 866 Plaza Owner, L.L.C. 29 unsold office condominium units at 866 United Nations Plaza in Turtle Bay, Manhattan. The transfer value was $60.8 million.
The deal closed on February 18, 2025 and was recorded on February 28, 2025. The 29 properties have 100,305 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $606 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 signatory for Carlyle Group was Jason Hart . The contract date was February 18, 2025. The deed documents do not state this is a deed-in-lieu of foreclosure, but according to a PincusCo analysis of the property records, the circumstances follow the pattern of a deed-in-lieu in that the buyer is the former lender, and sale price is similar to the recent loan value and the contract date is the same as the transfer date. The most recent recorded of debt was in 2023, with the amount set at $61.2 million, secures by 33 units. Four were sold since then, and the recent transfer is for 29 units.

Carlyle Group paid $217.5 million for 62 office condo units in the building in 2017, and sold just over half over the past eight years.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer AllianceBernstein had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Carlyle Group purchased 106 properties in 102 transactions for a total of $1.4 billion and sold three properties in two transactions for a total of $53.2 million over the same time period.

The property

The office condo in Turtle Bay has 100,305 square feet of built space according to a PincusCo analysis of city data. The parcel has a total lot size of 20,599 square feet. The city-designated market value for the property in 2022 is $8.9 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have not received any significant violations in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The neighborhood

In Turtle Bay, The bulk, or 36 percent of the 9 million square feet of commercial built space are specialty buildings, with elevator buildings next occupying 32 percent of the space. In sales, Turtle Bay has had very little sales volume relative to other neighborhoods with $117.3 million in sales volume in the last two years. For development, Turtle Bay has had very little major development activity relative to other neighborhoods.It had 186,875 square feet of commercial and multi-family construction under development in the last two years, which represents 2 percent of the neighborhood’s built space.

The block

On the tax block of 866 United Nations Plaza, PincusCo has identified the owner of the one commercial property that spans that spans zero square feet on the block.The identified owner is City Of New York.
There are no active new building construction projects on this tax block.

All properties are specialty.

The seller

The PincusCo database currently indicates that Carlyle Group owned at least 319 commercial properties with 3,753 residential units in New York City with 3,935,510 square feet and a city-determined market value of $921.3 million. (Market value is typically about 50% of actual value.) The portfolio has $700.5 million in debt, with top three lenders as Invesco, Prudential Financial, and Santander Bank respectively. Within the portfolio, the bulk, or 39 percent of the 3,935,510 square feet of built space are elevator properties, with industrial properties next occupying 27 percent of the space. The bulk, or 46 percent of the built space, is in Brooklyn, with Queens next at 32 percent of the space.

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