Carlyle Group pays $17M to Serabjit Singh for 23-unit rental in Clinton Hill

The Carlyle Group through the entity 25 Lexington Avenue Owner, L.L.C. paid $17 million to Serabjit Singh through the entity 802 LLC for the 23-unit rental building (F5) at 25 Lexington Avenue in Clinton Hill, Brooklyn and the adjacent vacant parcel (V0).
The deal closed on September 12, 2022 and was recorded on September 19, 2022. The two properties have 24,000 square feet of built space and 1,680 square feet of additional air rights according to PincusCo analysis of city data. The sale price per built square foot is $708 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.)

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 25 Lexington Avenue.

Prior sales and revenue

The former owners according to the Department of Housing Preservation and Development includes Serabjit Singh, head officer and Anne Gaudet, agent. The business entities are Management Group Of Brooklyn Llc and 802 Llc. Out of the two properties, one with a total of 24,000 square feet of built space generated revenue of $811,642 per year.

The property

The 25 Lexington Avenue parcel has frontage of 50 feet and is 100 feet deep with a total lot size of 5,000 square feet. The zoning is R6B which allows for up to 2 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $1.6 million.
The N/A Lexington Avenue parcel has frontage of eight feet and is 105 feet deep with a total lot size of 840 square feet. The zoning is R6B which allows for up to 2 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $10,000.

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.

Development

For the tax lot buildings, one out of the two buildings received a initial certificate of occupancy in the last ten years. There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The neighborhood

In Clinton Hill, the bulk, or 31 percent of the 10.3 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 18 percent of the space. In sales, Clinton Hill has near average sales volume among other neighborhoods with $316.8 million in sales volume in the last two years and is the 18th highest in Brooklyn. For development, Clinton Hill has near average amount of major developments among other neighborhoods and is the 19th highest in Brooklyn. It had 959,219 square feet of commercial and multi-family construction under development in the last two years, which represents 9 percent of the neighborhood’s built space.

The block

On the tax block of 25 Lexington Avenue, PincusCo has identified the owners of 10 of the 19 commercial properties representing 119,009 square feet of the 160,480 square feet. The largest owner is Rebecca Lemmer, followed by Mordechai Hirsch and then Myron Siegel.
On the tax block, there were two new building construction projects totaling 5,310 square feet. The largest is a two-unit, 2,626-square-foot R-3 building developed by Ines Lamuniere with plans filed December 22, 2016 and permitted January 3, 2018. The second largest is a one-unit, 2,684-square-foot R-3 building developed by Eran Malka with plans filed March 10, 2022 and it has not been permitted yet.

The majority, or 40 percent of the 160,480 square feet of built space are elevator buildings, with walkup buildings next occupying 34 percent of the space.

Surrounding

Within a 400-foot radius of 25 Lexington Avenue, Pincusco identified seven commercial real estate items of interests occurred over the past 24 months.
Of those seven items, two were for major renovation including a certificate of occupancy change. They were one permit applications with a total initial cost of $5 million and one initial temporary certificate of occupancy issuance for a project that initially costed $4.6 million. The most recent of these two items was the filing on August 11, 2021 for a 43,565-square-foot RES building with 30 residential units at 13 Lexington Avenue.
Of those seven items, three were sales above $5 million totaling $69.2 million. The most recent of the three was 277 Windmills LLC which bought the 4,039-square-foot, two-unit two-family building (B9) on 277 Greene Avenue for $5.9 million from Ryan Tooley on March 14, 2022.
Of those seven items, two were loans above $5 million totaling $35 million. The most recent of the two was KKR & Co. which borrowed $8.8 million from Berkeley Point Capital secured by the three-unit three-family building (C0) on 1 Lexington Avenue and six other properties on October 29, 2020.

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