Carlyle Group affiliate pays $5.45M for two Bushwick walkups

A Carlyle Group affiliate paid $5.45 million for two Bushwick walkups to two separate owners in two separate transactions.

In the first, Carlyle Group through the affiliate Townhouse Rental II, L.L.C. paid $3 million to Tristate Ventures through Harman Realty NY LLC for the midblock six-unit residential walkup building at 24 Harman Street in Bushwick, Brooklyn.
The deal closed on May 12, 2022 and was recorded on May 31, 2022.The property has 4,300 square feet of built space and 560 square feet of additional air rights for a total buildable of 4,860 square feet according to PincusCo analysis of city data. The sale price per built square foot is $709 and the price per buildable square foot is $627 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 9, 2013, for $290,000. Joseph Kaufman, the signatory for Tristate, is a managing partner at Tristate Ventures.

Prior sales and revenue

The former owner according to the Department of Housing Preservation and Development is Joseph Kaufman, head officer. The business entity is Harman Realty Ny Llc. The 4,300-square-foot property generated revenue of $95,030 or $22 per square foot, according to the most recent income and expense figures.

The property

The 24 Harman Street parcel has frontage of 20 feet and is 100 feet deep with a total lot size of 2,000 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 $908,000.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has received $50 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on January 26, 2015. There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The neighborhood

In Bushwick, the bulk, or 32 percent of the 51.4 million square feet of commercial built space are 1-4 family buildings, with residential walkup buildings next occupying 29 percent of the space. In sales, Bushwick has 3.3 times the average sales volume among other neighborhoods with $910.2 million in sales volume in the last two years and is the 3rd highest in Brooklyn. For development, Bushwick has 1.2 times the average amount of major developments relative to other neighborhoods and is the 18th highest in Brooklyn. It had 1.1 million square feet of commercial and multi-family construction under development in the last two years, which represents 2 percent of the neighborhood’s built space. There were 11 pre-foreclosure suit filed among other residential walkup buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of three of the seven commercial properties representing 20,153 square feet of the 25,583 square feet. The largest owner is Joseph Kaufman, followed by Melvyn Trepper and then Yoel Schwartz. There is one active new building construction project totaling 4,084 square feet. It is a six-unit, 4,084-square-foot R-2 building developed by Arash Gilardi with plans filed April 24, 2019 and it has not been permitted yet.

the majority, or 76 percent of the 105,499 square feet of built space are 1-4 family buildings, with residential walkup buildings next occupying 19 percent of the space.

Surrounding

Within a 400-foot radius of 24 Harman 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 issued on August 24, 2021 for the $1.1 million renovation of 6,404-square-foot R-2 building with eight residential units at 923 Bushwick Avenue.
Of those three items, two were loans above $5 million totaling $27.2 million. The most recent of the two was Carlyle Group which borrowed $22 million from Invesco Real Estate secured by the 4,013-square-foot, two-unit two-family building (B2) on 27 Bleecker Street and 10 other properties on January 13, 2021.

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In the second transaction, Carlyle Group through the entity Townhouse Rental II, L.L.C. paid $2.4 million to Jakov Telyas and Idan Shitrit through the entity 1261 Bushwick Avenue LLC for midblock three-unit 1-4 family building at 1261 Bushwick Avenue in Bushwick, Brooklyn. Jakov Telyas and Idan Shitrit signed on the previous mortgage for the property.
The deal closed on May 11, 2022 and was recorded on May 31, 2022. The property has 4,400 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $545 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 9, 2014, for $750,000.

Prior sales and revenue

The former owners according to the Department of Housing Preservation and Development includes Jakov Telyas, head officer and Matthew Gelfand, site manager. The business entity is 1261 Bushwick Avenue Llc.

The property

The 1261 Bushwick Avenue parcel has frontage of 20 feet and is 80 feet deep with a total lot size of 1,600 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 $1.8 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has not received any significant violations in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The neighborhood

In Bushwick, the bulk, or 32 percent of the 51.4 million square feet of commercial built space are 1-4 family buildings, with residential walkup buildings next occupying 29 percent of the space. In sales, Bushwick has 3.3 times the average sales volume among other neighborhoods with $910.2 million in sales volume in the last two years and is the 3rd highest in Brooklyn. For development, Bushwick has 1.2 times the average amount of major developments relative to other neighborhoods and is the 18th highest in Brooklyn. It had 1.1 million square feet of commercial and multi-family construction under development in the last two years, which represents 2 percent of the neighborhood’s built space. There were six pre-foreclosure suit filed among other 1-4 family buildings in the past 12 months.

The block

There are two active new building construction projects totaling 25,985 square feet. The largest is a 32-unit, 21,724-square-foot R-2 building developed by Boaz Gilad with plans filed January 2, 2014 and permitted May 11, 2015. The second largest is a five-unit, 4,261-square-foot R-2 building developed by Ronald Chien with plans filed May 31, 2018 and permitted June 7, 2019.

The majority, or 95 percent of the 180,447 square feet of built space are 1-4 family buildings, with residential walkup buildings next occupying 5 percent of the space.

Surrounding

Within a 400-foot radius of 1261 Bushwick Avenue, Pincusco identified two commercial real estate items of interests occurred over the past 24 months.
They were all for building rehabilitation or alteration that require a change to the certificate of occupancy. They were one permit applications with a total initial cost of $366,244 and one permit with a total initial cost of $592,000. The most recent of these two items was the filing on March 25, 2022 for a 4,636-square-foot R-2 building with four residential units at 1259 Bushwick Avenue.

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