Carlyle Group pays $15.4M for 4 walkups in Brooklyn, Queens

Carlyle Group paid $15.4 million for four walkups in Brooklyn and Queens from sellers Zalman Shanowitz, Yehuda Cohen, Mark Fernandez and Joel Jacobowitz in four separate transactions.

In the first, Carlyle Group through the entity Townhouse Rental II, L.L.C. paid $4.7 million to Zalman Shanowitz through the entity 911 Nostrand Realty LLC for the eight-unit residential walkup building (C1) at 911 Nostrand Avenue in Crown Heights, Brooklyn.
The deal closed on December 14, 2022 and was recorded on December 23, 2022. The property has 7,068 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $669 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, 2013, for $775,500. The signatory for Zalman Shanowitz was Solomon Eisenberg. The signatory for Carlyle Group was Carter Martin.

In the second, Carlyle Group through the entity Townhouse Rental II, L.L.C. paid $4.4 million to Yehuda Cohen through the entity 882 New York Management LLC for two-unit 1-4 family building (B1) at 882 New York Avenue in East Flatbush, Brooklyn. The deal closed on December 13, 2022 and was recorded on December 23, 2022. The property has 2,160 square feet of built space and 2,794 square feet of additional air rights for a total buildable of 4,957 square feet according to PincusCo analysis of city data. The sale price per built square foot is $2,026 and the price per buildable square foot is $882 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 October 29, 2019, for $930,000. The signatory for Yehuda Cohen was Yehuda Cohen. The signatory for Carlyle Group was Carter Martin.

In the third, Carlyle Group through the entity Townhouse Rental II, L.L.C. paid $3.7 million to Mark Fernandez through the entity Cornelia Street Investors LLC for six-unit residential walkup building (C2) at 314 Cornelia Street in Bushwick, Brooklyn. The deal closed on December 15, 2022 and was recorded on December 23, 2022. The property has 4,361 square feet of built space and 500 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 $853 and the price per buildable square foot is $765 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 November 15, 2018, for $1.2 million. The signatory for Mark Fernandez was Jason Zegans. The signatory for Carlyle Group was Carter Martin.

In the fourth, Carlyle Group through the entity Townhouse Rental II, L.L.C. paid $2.6 million to Joel Jacobowitz through the entity Jb Centre, LLC for three-unit 1-4 family building (C0) at 16-12 Centre Street in Ridgewood, Queens. The deal closed on December 2, 2022 and was recorded on December 23, 2022.The property has 2,500 square feet of built space and 2,500 square feet of additional air rights for a total buildable of 5,000 square feet according to PincusCo analysis of city data. The sale price per built square foot is $1,030 and the price per buildable square foot is $515 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 January 23, 2017, for $850,000. The signatory for Joel Jacobowitz was Joel Jacobowitz. The signatory for Carlyle Group was Carter Martin.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Carlyle Group purchased 126 properties in 108 transactions for a total of $704.2 million and sold one properties in one transactions for a total of $4 million over the past 24 months.

The property

The 911 Nostrand Avenue parcel has frontage of 17 feet and is 98 feet deep with a total lot size of 1,812 square feet. The lot is irregular. The zoning is R7-1 which allows for up to 3.44 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $1.2 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 two DOB violations, $88,750 in ECB penalties, and $95,225 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on July 11, 2019. 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 five of the 13 commercial properties representing 183,885 square feet of the 257,704 square feet. The largest owner is Yakov Sufrin, followed by Solomon Eisenberg and then NYC Department of Education.
On the tax block, there was one new building construction project filed totaling 78,356 square feet. It is a zero-unit, 78,356-square-foot B building developed by Mendy Gansburg with plans filed March 1, 2022 and it has not been permitted yet.

The majority, or 54 percent of the 257,704 square feet of built space are specialty buildings, with elevator buildings next occupying 30 percent of the space.

The seller

The PincusCo database currently indicates that Zalman Shanowitz owned at least five commercial properties in New York City with 66,400 square feet and a city-determined market value of $5.9 million. (Market value is typically about 50% of actual value.) Within the portfolio, all identified are walkup properties. They are all located in Brooklyn.

The buyer

The PincusCo database currently indicates that Carlyle Group owned at least 156 commercial properties in New York City with 1,994,170 square feet and a city-determined market value of $486.3 million. (Market value is typically about 50% of actual value.) The portfolio has $1 billion in debt, with top three lenders as Invesco Real Estate, Invesco, and Santander Bank respectively. Within the portfolio, the bulk, or 64 percent of the 1,994,170 square feet of built space are elevator properties, with walkup properties next occupying 13 percent of the space. The bulk, or 42 percent of the built space, is in Brooklyn, with Queens next at 35 percent of the space.

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