Carlyle, Greenbrook pay $3.6M to Somekh Group for 6-unit walkup in Bushwick

Carlyle Group and Greenbrook Partners through the entity Townhouse Rental II, L.L.C. paid $3.6 million to Somekh Group through the entity 1228 Putnam LLC for the six-unit residential walkup building (C2) at 1228 Putnam Avenue in Bushwick, Brooklyn.
The deal closed on May 15, 2024 and was recorded on May 21, 2024. The property has 4,444 square feet of built space and 601 square feet of additional air rights for a total buildable of 5,039 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $813 and the price per buildable square foot is $717 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 March 29, 2018, for $785,000. The signatory for Somekh Group was Navon Somekh. The signatory for Carlyle Group and Greenbrook Partners was Carter Martin. The contract date was July 7, 2022.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Carlyle Group purchased 12 properties in 10 transactions for a total of $433.2 million and sold one property in one transactions for a total of $4 million over the past 24 months.
The seller Somekh Group had not purchased any other properties and had not sold any properties over the same time period.

The property

The residential walkup building with 6 residential units in Bushwick has 4,444 square feet of built space and 601 square feet of additional air rights for a total buildable of 5,039 square feet according to a PincusCo analysis of city data. The parcel has frontage of 20 feet and is 100 feet deep with a total lot size of 2,074 square feet. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $421,000.

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 $600 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on December 15, 2022. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot. On the tax lot, the most recent condominium plan was filed by 1228 PUTNAM LLC to create 6 residential units in a building at 1228 Putnam Avenue in Bushwick, Brooklyn, called 1228 Putnam Avenue Condominiumthat has a $3.7 million sellout, according to an September 13, 2021 submission to the New York State Attorney General. The principals of the sponsor, 1228 PUTNAM LLC, were Eyal Ovadia and Navon Somekh.

The block

On this tax block, PincusCo has identified the owners of four of the nine commercial properties representing 11,399 square feet of the 54,910 square feet. The largest owner is Zhi Xiang Lin, followed by Linda Vera-Benitez and then G-Way Management.
On the tax block, there were four new building construction projects totaling 28,513 square feet. The largest is a 19-unit, 14,293 square-foot residential (R-2) building submitted by Boaz Gilad with plans filed May 22, 2015 and it has not been permitted yet. The second largest is a seven-unit, 4,808 square-foot residential (R-2) building submitted by Boaz Gilad with plans filed May 2, 2017 and permitted May 3, 2018.

The majority, or 50 percent of the 54,910 square feet of built space are elevator buildings, with mixed-use buildings next occupying 32 percent of the space.

The buyer

The PincusCo database currently indicates that Greenbrook Partners owned at least 324 commercial properties with 1,590 residential units in New York City with 1,478,304 square feet and a city-determined market value of $487.9 million. (Market value is typically about 50% of actual value.) The portfolio has $348.8 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 50 percent of the 1,478,304 square feet of built space are walkup properties, with C0 properties next occupying 13 percent of the space. The bulk, or 96 percent of the built space, is in Brooklyn, with Queens next at 4 percent of the space.

The PincusCo database currently indicates that Carlyle Group owned at least 304 commercial properties with 2,792 residential units in New York City with 3,800,197 square feet and a city-determined market value of $893.1 million. (Market value is typically about 50% of actual value.) The portfolio has $600 million in debt, with top three lenders as Invesco, Prudential Financial, and Santander Bank respectively. Within the portfolio, the bulk, or 40 percent of the 3,800,197 square feet of built space are elevator properties, with industrial properties next occupying 26 percent of the space. The bulk, or 45 percent of the built space, is in Brooklyn, with Queens next at 33 percent of the space.

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