Carlyle Group joins Stonehenge to pay $114M to UBS for 196-unit rental in Yorkville

Stonehenge NYC and partner Carlyle Group through the entity 408 East 92nd Street Owner, L.L.C. paid $114 million to UBS Realty Investors through the entity Rivereast Apartments Investors LLC for the 196-unit residential elevator building (D6) at 408 East 92nd Street in Yorkville, Manhattan. Carlyle Group is one of the most active buyers of real estate in New York City, with a particular focus on smaller multifamily properties, but also buying larger assets.
The acquisition was financed with $60.9 million in debt from Mesa West Capital.
Stonehenge and Carlyle Group partnered in 2019, when Carlyle Group came as a new investor and recapped the 479-unit Ritz Plaza, a property Stonehenge has owned since 1996, giving it a valuation of $235 million.
The Real Deal reported last year that UBS put the property on the market, looking to sell it for up to $125 million. The Commercial Observer in January reported a few days after the contract was signed that Stonehenge was the buyer of 409 East 92nd Street, but did not include Carlyle. The contract date was January 19, 2023.
The deal closed on April 19, 2023 and was recorded on April 24, 2023. The property has 194,212 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $586 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 August 3, 2005, for $94.9 million. The signatory for UBS Realty Investors was Thomas Pierandri. The signatory for Stonehenge NYC and Carlyle Group was Richard A. Cohen. The brokers were Gary Phillips, Will Silverman and Daniel Parker of Eastdil Secured.

The buyers

The PincusCo database currently indicates that Carlyle Group owned at least 197 commercial properties with 2,014 residential units in New York City with 2,456,910 square feet. The portfolio has $1.1 billion in debt, with top three lenders as Invesco Real Estate, Invesco, and Santander Bank respectively. Within the portfolio, the bulk, or 52 percent of the 2,456,910 square feet of built space are elevator properties, with walkup properties next occupying 14 percent of the space. The bulk, or 40 percent of the built space, is in Brooklyn, with Queens next at 36 percent of the space.
The PincusCo database currently indicates that Stonehenge NYC owned at least 21 commercial properties with 2,905 residential units in New York City with 2,989,153 square feet. Within the portfolio, the bulk, or 99 percent of the 2,989,153 square feet of built space are elevator properties, with walkup properties next occupying 1 percent of the space. The bulk, or 87 percent of the built space, is in Manhattan, with Queens next at 13 percent of the space.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Stonehenge NYC purchased two properties in two transactions for a total of $214.9 million and has no record it sold any properties over the past 24 months.
The seller UBS Realty Investors had not purchased any other properties and had not sold any properties over the same time period. The former owners according to the Department of Housing Preservation and Development includes David Mccarthy, head officer and Alexis West, site manager. The business entities are Greystar Real Estate Partners LLC and Rivereast Apartments Investors Llc. The 194,212-square-foot property generated revenue of $7.4 million or $38 per square foot, according to the most recent income and expense figures.

The property

The residential elevator building with 196 residential units in Yorkville has 194,212 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 100 feet and is 75 feet deep with a total lot size of 7,796 square feet. The lot is irregular. The zoning is C2-8 which allows for up to 2 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The property has a 421A exemption that started in 2007 and expires in 2027. The city-designated market value for the property in 2022 is $38.5 million.

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 $100 in OATH penalties in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The block

On this tax block, PincusCo has identified the owners of seven of the 16 commercial properties representing 127,362 square feet of the 771,442 square feet. The largest owner is Slate Property Group, followed by Sjm Partners and then Eli Zabar.
On the tax block, there was one new building construction project filed totaling 35,790 square feet. It is a 35,790 square-foot storage (S-1) building submitted by SJM Partners and filed by Stephen McBride with plans filed December 2, 2016 and permitted August 24, 2020.

The majority, or 70 percent of the 771,442 square feet of built space are elevator buildings, with industrial buildings next occupying 8 percent of the space.

The seller

The PincusCo database currently indicates that UBS Realty Investors owned at least three commercial properties with 43 residential units in New York City with 915,559 square feet and a city-determined market value of None. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 95 percent of the 915,559 square feet of built space are office properties, with elevator properties next occupying 4 percent of the space. The bulk, or 96 percent of the built space, is in Manhattan, with Brooklyn next at 4 percent of the space.

Direct link to Acris document. link