Carlyle Group affiliate pays $10M for three Bushwick walkups

The Carlyle Group affiliate Townhouse Rental II, paid just under $10 million for three walkups buildings in Bushwick, Brooklyn, in three separate transactions. The sellers were Joel Fried and Oren Hakim.

In the first deal, Townhouse Rental II, L.L.C. paid $4 million to Joel Fried through the entity Rf Melrose Holding LLC for the six-unit residential walkup building (C2) at 248 Melrose Street in Bushwick, Brooklyn.
The deal closed on June 23, 2022 and was recorded on July 6, 2022. The property has 4,500 square feet of built space and 1,575 square feet of additional air rights for a total buildable of 6,075 square feet according to PincusCo analysis of city data. The sale price per built square foot is $888 and the price per buildable square foot is $658 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 former owners according to the Department of Housing Preservation and Development includes Joe Fried, head officer and Abe Rutner, shareholder. The business entity is Rf Melrose Holding Llc. The 4,500-square-foot property generated revenue of $84,870 or $19 per square foot, according to the most recent income and expense figures.

In the second deal, Townhouse Rental II, L.L.C. paid $3.6 million to Oren Hakim through the entity 476 Group LLC for six-unit residential walkup building (C2) at 476 Irving Avenue in Bushwick, Brooklyn.
The deal closed on June 23, 2022 and was recorded on July 6, 2022. The property has 4,256 square feet of built space and 361 square feet of additional air rights for a total buildable of 4,617 square feet according to PincusCo analysis of city data. The sale price per built square foot is $841 and the price per buildable square foot is $775 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 October 9, 2018, for $1.1 million.

The former owner according to the Department of Housing Preservation and Development is Oren Hakim, head officer. The business entity is 476 Group Llc. The 4,256-square-foot property generated revenue of $80,268 or $19 per square foot, according to the most recent income and expense figures.

In the third deal, Townhouse Rental II, L.L.C. paid $2.4 million to Joel Fried through the entity Rf Greene Holding LLC for the three-unit  building (C0) at 1190 Greene Avenue in Bushwick, Brooklyn.
The deal closed on June 23, 2022 and was recorded on July 6, 2022. The property has 3,207 square feet of built space and 1,514 square feet of additional air rights for a total buildable of 4,719 square feet according to PincusCo analysis of city data. The sale price per built square foot is $748 and the price per buildable square foot is $508 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 May 18, 2015, for $800,000.

The former owners according to the Department of Housing Preservation and Development includes Joel Fried, head officer and Movert Rutner, officer. The business entity is Rf Greene Holding Llc.

The neighborhood

In Bushwick, the bulk, or 42 percent of the 35 million square feet of commercial built space are residential walkup buildings, with residential elevator buildings next occupying 18 percent of the space. In sales, Bushwick has 2.9 times the average sales volume among other neighborhoods with $925 million in sales volume in the last two years and is the 4th highest in Brooklyn. For development, Bushwick has 1.9 times the average amount of major developments relative to other neighborhoods and is the 9th highest in Brooklyn. It had 2 million square feet of commercial and multi-family construction under development in the last two years, which represents 6 percent of the neighborhood’s built space. There were 12 pre-foreclosure suit filed among other residential walkup buildings in the past 12 months.

The block

On this tax block of 248 Melrose Street, PincusCo has identified the owners of 12 of the 22 commercial properties representing 143,864 square feet of the 208,496 square feet. The largest owner is Catholic Charities Brooklyn & Queens, followed by Luis Navarro and then Israel Silberstein. There are no active new building construction projects on this tax block.

The majority, or 47 percent of the 208,496 square feet of built space are residential elevator buildings, with residential walkup buildings next occupying 34 percent of the space.

Surrounding

Within a 400-foot radius of 248 Melrose Street, PincusCo identified three commercial real estate items of interests occurred over the past 24 months.
Of those three items, one was for major renovation including a certificate of occupancy change. It was a permit application filed on January 12, 2022 for the $374,850 renovation of 10,915-square-foot R-2 building with nine residential units at 254 Melrose Street.
Of those three items, two were loans above $5 million totaling $36.7 million. The most recent of the two was Frimy Goldberger which borrowed $14.7 million from Berkadia Commercial Mortgage secured by the 2,550-square-foot, five-unit mixed-use building (S4) on 67 Central Avenue and three other properties on January 14, 2021.

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