Carlyle, Blumenfeld Development pay $122.6M for storage in Flushing, Woodside

A venture affiliated with Carlyle Group and Blumenfeld Development Group paid $122.6 million to LSC Development for a storage building in Flushing and another one in Woodside in two separate transactions. Argentic Investment Management financed the acquisitions with an $84 million loan.

In the larger of the two purchase transactions, Carlyle Group and Blumenfeld Development Group through the entity 34-01 CP IX Owner, L.L.C. paid $72 million to LSC Development through the entity 3401 CP Holdings LLC for the Life Storage-branded storage building (E7) at 34-09 College Point Boulevard in Flushing, Queens.
The deal closed on December 1, 2023 and was recorded on December 11, 2023. The property has 158,669 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $453 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 seller bought the property on November 18, 2016, for $21 million. The signatory for LSC Development was Christopher S. Barry, a company partner. The signatory for Carlyle Group and Blumenfeld Development Group was Jason Hart, a managing director at Carlyle Group. The contract date was December 1, 2023.

In the second transaction, Carlyle Group and Blumenfeld Development Group through the entity 62-05 30th Ave IX Owner, L.L.C. paid $50.6 million to LSC Development through the entity 30th Avenue Woodside Holdings LLC for the industrial building (E7) at 62-05 30th Avenue in Woodside, Queens.
The deal closed on December 1, 2023 and was recorded on December 11, 2023. The property has 102,056 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $495 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.)

As for the financing, Carlyle Group and Blumenfeld Development Group through the entity 34-01 Cp IX Operator, L.L.C. and 62-05 30th Ave IX Owner, L.L.C. as borrowers signed an acquisition loan with lender Argentic Investment Management through the entity Argentic Real Estate Investment 2 LLC valued at $84 million for two industrial properties including the industrial building (E7) at 34-09 College Point Boulevard in Flushing, Queens and industrial building (E7) at 62-05 30th Avenue in Woodside, Queens.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Carlyle Group purchased 189 properties in 171 transactions for a total of $979.5 million and sold one property in one transactions for a total of $4 million over the past 24 months.
The seller LSC Development had not purchased any other properties and had not sold any properties over the same time period.

The property

The industrial building in Flushing has 158,669 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 149 feet and is 386 feet deep with a total lot size of 53,230 square feet. The lot is irregular. The zoning is M2-1 which allows for up to 2 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $19.1 million. The most recent loan totaled $35.3 million and was provided by ACRES Capital on November 23, 2021.

Violations and lawsuits

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

Development

For the tax lot building, it received its initial certificate of occupancy on January 22, 2021. 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 Flushing, The bulk, or 45 percent of the 37.7 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 20 percent of the space. In sales, Flushing has 2.2 times the average sales volume among other neighborhoods with $758.3 million in sales volume in the last two years and is the 3rd highest in Queens. For development, Flushing has 1.9 times the average amount of major developments relative to other neighborhoods and is the 5th highest in Queens. It had 1.9 million square feet of commercial and multi-family construction under development in the last two years, which represents 5 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of two of the 12 commercial properties representing 158,669 square feet of the 246,195 square feet. The two identified owners are LSC Development and Consolidated Edison.
There are no active new building construction projects on this tax block.

The majority, or 100 percent of the 246,195 square feet of built space are industrial buildings, with specialty buildings next occupying 0 percent of the space.

The seller

The PincusCo database currently indicates that LSC Development owned at least two commercial properties in New York City with 260,725 square feet and a city-determined market value of $24 million. (Market value is typically about 50% of actual value.) Within the portfolio, all identified are industrial properties. They are all located in Queens.

The buyer

The PincusCo database currently indicates that Carlyle Group owned at least 265 commercial properties with 2,648 residential units in New York City with 2,906,245 square feet and a city-determined market value of $765.8 million. (Market value is typically about 50% of actual value.) The portfolio has $1.2 billion in debt, with top three lenders as Invesco Real Estate, Invesco, and Santander Bank respectively. Within the portfolio, the bulk, or 53 percent of the 2,906,245 square feet of built space are elevator properties, with walkup properties next occupying 16 percent of the space. The bulk, or 43 percent of the built space, is in Brooklyn, with Queens next at 29 percent of the space.
The PincusCo database currently indicates that Blumenfeld Development Group owned at least three commercial properties with three residential units in New York City with 145,993 square feet and a city-determined market value of $58.8 million. (Market value is typically about 50% of actual value.) The portfolio has $151.8 million in debt, with top three lenders as AIG, Invesco, and NYS Common Retirement Fund respectively. Within the portfolio, the bulk, or 91 percent of the 145,993 square feet of built space are retail properties, with C0 properties next occupying 9 percent of the space. The bulk, or 91 percent of the built space, is in Queens, with Manhattan next at 9 percent of the space.

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