Carlyle Group pays $12.9M to Wildflower Ltd. for storage in Nolita

Carlyle Group through the entity CPI Mott Street Owner, L.L.C. paid $12.9 million to Wildflower Ltd. through the entity 262 Mott Property LLC for 17 storage and commercial condominium units at 262 Mott Street in Nolita, Manhattan.
The deal closed on April 14, 2022 and was recorded on April 28, 2022.The 17 properties have 23,520 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $550 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 signatory for Wildflower Ltd. was Matthew A. Dicker. The signatory for Carlyle Group was Jason Hart. These are storage units in the building, 262 Mott Street. Wildflower’s predecessor Madison Development bought 24 units in the building including storage and retail in 2016 for $26.25 million, and sold seven units for $14 million in 2018.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Carlyle Group purchased 12 properties in 12 transactions for a total of $234.9 million and sold one properties in one transactions for a total of $9.5 million over the past 24 months.
The seller Wildflower Ltd. purchased 15 properties in eight transactions for a total of $75.9 million and sold five properties in two transactions for a total of $292.4 million over the same time period.

Violations and lawsuits

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

The neighborhood

In Nolita, the bulk, or 46 percent of the 3.3 million square feet of commercial built space are residential walkup buildings, with residential elevator buildings next occupying 21 percent of the space. In sales, Nolita has had very little sales volume relative to other neighborhoods with $142.9 million in sales volume in the last two years. For development, Nolita has had very little major development activity relative to other neighborhoods.It had 13,511 square feet of commercial and multi-family construction under development in the last two years, which represents 0.41 percent of the neighborhood’s built space.

The block

On the tax block of 262 Mott Street, PincusCo has identified the owners of 13 of the 85 commercial properties representing 182,223 square feet of the 379,016 square feet. The largest owner is Mark D. Kalimian, followed by Croman Real Estate and then Janet Giaimo Vitale. There are no active new building construction projects on this tax block.

The majority, or 59 percent of the 329,859 square feet of built space are residential walkup buildings, with residential elevator buildings next occupying 31 percent of the space.

The seller

The PincusCo database, which is incomplete, currently tracks 10 commercial properties owned by Wildflower Ltd. with 522,324 square feet and a city-determined market value of $71.5 million. (Market value is typically about 50% of actual value.) The portfolio has $205.5 million in debt, with top three lenders as Ares Management, JPMorgan Chase, and CIT Bank respectively. Within the portfolio, the bulk, or 86 percent of the 522,324 square feet of built space are industrial properties, with development properties next occupying 10 percent of the space. The bulk, or 94 percent of the built space, is in Queens, with Bronx next at 6 percent of the space.

The buyer

The PincusCo database, which is incomplete, currently indicates that Carlyle Group owned at least 26 commercial properties with 530,653 square feet and a city-determined market value of $110.8 million. (Market value is typically about 50% of actual value.) The portfolio has $314.9 million in debt, with top three lenders as Invesco, Santander Bank, and Citibank respectively. Within the portfolio, the bulk, or 68 percent of the 530,653 square feet of built space are residential elevator properties, with specialty properties next occupying 14 percent of the space. The bulk, or 54 percent of the built space, is in Brooklyn, with Queens next at 46 percent of the space.

Surrounding

Within a 400-foot radius of 262 Mott Street, PincusCo identified 10 commercial real estate items of interests occurred over the past 24 months.
Of those 10 items, four were sales above $5 million totaling $70.1 million. The most recent of the four was Status Capital which bought the 4,045-square-foot, four-unit mixed-use building (S3) on 19 Prince Street for $5.5 million from Peter M. Gottlieb on March 14, 2022.
Of those 10 items, six were loans above $5 million totaling $74.6 million. The most recent of the six was Mark D. Kalimian which borrowed $30.8 million from Apple Bank for Savings secured by the 92,088-square-foot, 163-unit rental (D7) on 65 East Houston Street on December 20, 2021.

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