Carlyle Group buys 175-unit LIC rental for $85M from Hope Street

The Carlyle Group bought one of Long Island City’s newest apartment buildings for $85 million from Hope Street Capital.

The 175-unit rental building at 22-22 Jackson Avenue was built in 2015 by Jeffrey Gershon’s Hope Street Capital after buying the property for $16.5 million in 2012. PNC Bank financed the construction of the building with a $49 million loan in 2014. Advertised rental rates at the building start at $2,050, according to StreetEasy. The building is across the street from the Wolkoff Group’s newly constructed, 1,115-unit rental complex, 5Pointz at 22-44 Jackson Avenue that obtained its initial temporary certificate of occupancy in February 2021.

Robert Gershon was the signatory for Hope Street Capital through the entity 2222 Jackson Owners, LLC. Jason Hart signed for the Carlyle Group, through the entity 22-22 Jackson Avenue Owner, LLC.

The deal closed on November 10, 2021 and was recorded on November 29, 2021. It was financed with a $63.5 million acquisition loan from Citibank.

The property has 167,943 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $506 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 December 20, 2012, for $16.5 million. (420604983)The DOB issued a new construction (NB) initial temporary certificate of occupancy for the building with 175 residential units on June 6, 2016. (420604983) Plans for a 175-unit, 124,343 square-foot R-2 were filed on June 1, 2013 and were permitted on March 25, 2014.

Within a 400-foot radius of 22-22 Jackson Avenue, PincusCo identified four commercial real estate items of interests occurred over the past 24 months. Of those four items, two were in new building development. There were one new building permit application and one new building permit. The most recent of these two items was a permit on June 15, 2021 for a 76,322-square-foot R-2 building with 92 residential units at 45-25 Davis Street.

Of those four items, two were loans above $5 million totaling $343.5 million. The most recent of the two was Wolkoff Group which borrowed $300 million from JPMorgan Chase secured by the 1,093,567-square-foot, 1,117-unit rental (D6) on 22-44 Jackson Avenue on March 29, 2021.

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