Carlyle buys stake in Greenbrook’s 8-unit rental in Carroll Gardens through $6.9M deal

Carlyle Group through the entity Townhouse Rental, L.L.C. paid $6.9 million to Greenbrook Partners through the entity Gh 38 3 St Fee, LLC for the eight-unit residential walkup building (C1) at 38 3rd Street in Carroll Gardens, Brooklyn. Greenbrook Partners remains in the deal as a partner with Carlyle Group. The firms are co-owners of dozens of small rental buildings in Brooklyn.
The deal closed on January 12, 2024 and was recorded on January 19, 2024. The property has 6,696 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $1,030 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 April 24, 2018, for $4.5 million. The signatory for Greenbrook Partners was Gregory Fournier. The signatory for Greenbrook Partners and Carlyle Group was Carter Martin. The contract date was January 12, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Greenbrook Partners purchased 18 properties in 15 transactions for a total of $55.9 million and sold 22 properties in 22 transactions for a total of $125.4 million over the past 24 months.
The seller Greenbrook Partners purchased 24 properties in 21 transactions for a total of $78.2 million and sold 22 properties in 22 transactions for a total of $125.4 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Prashanth Rayapudi, head officer and Dinara Igimbayeva, site manager. The business entity is Gh 38 3 St Fee Llc.

The property

The residential walkup building with 8 residential units in Carroll Gardens has 6,696 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 27 feet and is 100 feet deep with a total lot size of 2,699 square feet. The zoning is R6B which allows for up to 2 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $2.3 million. The most recent loan totaled $9.5 million and was provided by Connectone Bank on April 30, 2020.

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 received $620 in ECB penalties, 11 housing violations, and $620 in OATH penalties 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 block

On this tax block, PincusCo has identified the owners of six of the 15 commercial properties representing 36,115 square feet of the 98,558 square feet. The largest owner is Sugar Hill Capital Partners, followed by Palmiotto Dominick and then Oliver Papraniku.
On the tax block, there was one new building construction project filed totaling 5,000 square feet. It is a 82-unit, 5,000 square-foot residential (R-2) building submitted by Shimon Hoffman and filed by Shimon Hoffman with plans filed March 3, 2022 and permitted May 13, 2022.

The majority, or 48 percent of the 98,558 square feet of built space are walkup buildings, with industrial buildings next occupying 37 percent of the space.

The seller

The PincusCo database currently indicates that Greenbrook Partners owned at least 97 commercial properties with 721 residential units in New York City with 669,886 square feet and a city-determined market value of $194.1 million. (Market value is typically about 50% of actual value.) The portfolio has $277.3 million in debt, with top three lenders as Invesco Real Estate, Rialto Capital Management, and MP Real Estate Capital respectively. Within the portfolio, the bulk, or 66 percent of the 669,886 square feet of built space are walkup properties, with mixed-use properties next occupying 10 percent of the space. They are all located in Brooklyn.

The buyer

The PincusCo database currently indicates that Carlyle Group owned at least 274 commercial properties with 2,679 residential units in New York City with 3,193,349 square feet and a city-determined market value of $798 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 48 percent of the 3,193,349 square feet of built space are elevator properties, with industrial properties next occupying 15 percent of the space. The bulk, or 40 percent of the built space, is in Brooklyn, with Queens next at 35 percent of the space.
The PincusCo database currently indicates that Greenbrook Partners owned at least 97 commercial properties with 721 residential units in New York City with 669,886 square feet and a city-determined market value of $194.1 million. (Market value is typically about 50% of actual value.) The portfolio has $277.3 million in debt, with top three lenders as Invesco Real Estate, Rialto Capital Management, and MP Real Estate Capital respectively. Within the portfolio, the bulk, or 66 percent of the 669,886 square feet of built space are walkup properties, with mixed-use properties next occupying 10 percent of the space. They are all located in Brooklyn.

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