Carlyle buys storage building for $50.4M, last in 4-building, $110M deal

Carlyle Group through the entity SS NYC 121st Street, L.L.C. paid $50.3 million to Equity Resource Investments and SNL Storage through the entity SNL XVIII, LLC for the storage building at 87-16 121st Street in Richmond Hill, Queens.
This is the fourth of four storage buildings Carlyle Group purchased from Equity Resource Investments and SNL Storage, in a deal totaling $110.4 million. The other properties were 145 18th Street in Greenwood Heights, Brooklyn, for $25.6 million; 651 Utica Avenue in East Flatbush, Brooklyn, for $14.5 million; and 1690-1696 East New York Avenue in Brownsville, Brooklyn, for $20 million.
The sale closed on April 12, 2024 and was recorded on April 26, 2024. The property has 154,782 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $325 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 sellers bought the property on June 22, 2018, for $11 million. The signatory for Equity Resource Investments and SNL Storage was Eggert Dagbjartsson. The signatory for Carlyle Group was Wonjoong Kim. The contract date was November 17, 2023. Eggert Dagbjartsson is managing partner at Equity Resource Investments which partnered with SNL on this and other deals.

The PincusCo database currently indicates that Carlyle Group owned at least 296 commercial properties with 3,605,570 square feet, 2,768 residential units and a city-determined market value of $870.1 million. (Market value is typically about 50% of actual value.) The portfolio has $1.2 billion in debt, with top lenders as Invesco Real Estate, and Santander Bank respectively. Within the portfolio, the bulk, or 42 percent of the 3,605,570 square feet of built space are elevator properties, with industrial properties next occupying 23 percent of the space. The bulk, or 47 percent of the built space, is in Brooklyn, with Queens next at 31 percent of the space.

The property

The industrial building in Richmond Hill has 154,782 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 80 feet and is 230 feet deep with a total lot size of 24,700 square feet. The lot is irregular. The zoning is M1-5 which allows for up to 5 times floor area ratio (FAR) for manufacturing. The city-designated market value for the property in 2022 is $12.9 million. The most recent loan totaled $33.7 million and was provided by Saperean Capital on October 23, 2019.

Development

SNL Storage submitted a new building construction project for a 125,258 square-foot storage (S-1) building at 87-16 121 Street. The plan was filed on December 12, 2018 and was permitted on March 24, 2020. It calls for the construction of a 85-foot tall, seven-story building and was filed with the New York City Department of Buildings under job number 421713033.

For the tax lot building, it received its initial certificate of occupancy on February 6, 2023.

The surrounding

Within a 400-foot radius of 87-19 120 Street, PincusCo identified one commercial real estate item of interests occurred over the past 24 months. It was a sale which NYC School Construction Authority bought the 35,600-square-foot, one-unit industrial (F5) on 120-08 Jamaica Avenue and three other properties for $18 million from Marc Beige on October 18, 2023.

Direct link to the property’s ACRIS page.