Carlyle Group pays $2.2M for 3-unit in Bushwick

The Carlyle Group and Townhouse Rental II, L.L.C. paid $2.2 million to Andrew Eckstein through the entity Harman 460 LLC for three-unit building (C0) at 460 Harman Street in Bushwick, Brooklyn.
The deal closed on July 19, 2022 and was recorded on July 27, 2022. The property has 3,072 square feet of built space and 1,780 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 $730 and the price per buildable square foot is $461 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 September 29, 2016, for $1.1 million. The signatory for Andrew Eckstein was Andrew Eckstein. The signatory for Carlyle Group and Townhouse Rental II, L.L.C. was Carter Martin. The contract was signed November 15, 2021.

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 property in one transaction for a total of $9.5 million over the past 24 months.
The seller Andrew Eckstein 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 Andrew Eckstein, head officer and Maria Navarrete, site manager. The business entity is Harman 460 Llc.

The property

The 460 Harman St parcel has frontage of 20 feet and is 100 feet deep with a total lot size of 2,000 square feet. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $1.4 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 not received any significant violations 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 seven of the 17 commercial properties representing 38,052 square feet of the 84,902 square feet. The largest owner is Sherrie Hon, followed by Peter & Frank Pirrone and then Dorothea Donelan Avery. There is one active new building construction project totaling 8,779 square feet. It is a 10-unit, 8,779-square-foot R-2 building developed by Jack Rothenberg with plans filed December 29, 2015 and permitted April 4, 2017.

the majority, or 53 percent of the 84,902 square feet of built space are walkup buildings, with mixed-use buildings next occupying 38 percent of the space.

The buyer

The PincusCo database currently indicates that Carlyle Group owned at least 121 commercial properties in New York City with 1,956,097 square feet and a city-determined market value of $472 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 1,956,097 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.
The PincusCo database currently indicates that Townhouse Rental Ii, L.L.C. owned at least 33 commercial properties in New York City with 144,535 square feet and a city-determined market value of $34.3 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 60 percent of the 144,535 square feet of built space are walkup properties, with C0 properties next occupying 23 percent of the space. The bulk, or 82 percent of the built space, is in Brooklyn, with Queens next at 18 percent of the space.

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