Carlyle Group pays $10.8M for 22-unit rental in Carroll Gardens

Carlyle Group through the entity 104 Luquer Street Owner, L.L.C. paid $10.8 million to Stephen Palmese, Robert Palmese, and Rachel Foster through the entity 104 Luquer Street LLC for 22-unit residential elevator building (D1) at 104-108 Luquer Street in Carroll Gardens, Brooklyn.
The deal closed on July 20, 2022 and was recorded on July 29, 2022. The property has 24,150 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $448 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 February 12, 2019, for $9.2 million. The signatory for Stephen Palmese, Robert Palmese, and Rachel Foster was Stephen Palmese. The signatory for Carlyle Group was Jason Greenberg. Rachel Foster was a signatory in prior deed transfers.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Carlyle Group purchased 32 properties in 16 transactions for a total of $334.3 million and sold one properties in one transactions for a total of $9.5 million over the past 24 months.
The seller Stephen Palmese had not purchased any other properties and sold two properties in one transactions for a total of $16.5 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Robert Palmese, head officer and Stephen Palmese, officer. The business entity is 104 Luquer Street Llc. The 24,150-square-foot property generated revenue of $771,706 or $32 per square foot, according to the most recent income and expense figures.

The property

The 104-108 Luquer Street parcel has frontage of 69 feet and is 100 feet deep with a total lot size of 6,945 square feet. The lot is irregular. The zoning is R6B which allows for up to 2 times floor area ratio (FAR) for residential with inclusionary housing. The property has a 421A exemption that started in 2007.0 and expires in 2022.0. The city-designated market value for the property in 2022 is $4.3 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 received $625 in ECB penalties and $675 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 $5 million on this tax lot.

The block

On this tax block, PincusCo has identified the owners of one of the six commercial properties representing 30,433 square feet of the 62,388 square feet. The identified owner is Joshua Salon. There are no active new building construction projects on this tax block.

The majority, or 87 percent of the 62,388 square feet of built space are elevator buildings, with mixed-use buildings next occupying 12 percent of the space.

The buyer

The PincusCo database currently indicates that Carlyle Group owned at least 122 commercial properties in New York City with 1,959,169 square feet and a city-determined market value of $473.4 million. (Market value is typically about 50% of actual value.) The portfolio has $892.6 million in debt, with top three lenders as Invesco Real Estate, Invesco, and Santander Bank respectively. Within the portfolio, the bulk, or 63 percent of the 1,959,169 square feet of built space are elevator properties, with rental condo properties next occupying 9 percent of the space. The bulk, or 39 percent of the built space, is in Manhattan, with Queens next at 34 percent of the space.

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