Carlyle Group pays $2.4M for 2-family in Bushwick

Carlyle Group through the entity Townhouse Rental II, L.L.C. paid $2.4 million to Yosef Beer through the entity JB Covert LLC for the two-family building (A5) at 237 Covert Street in Bushwick, Brooklyn.
The deal closed on February 17, 2023 and was recorded on February 27, 2023. The property has 1,896 square feet of built space and 2,903 square feet of additional air rights for a total buildable of 4,799 square feet according to PincusCo analysis of city data. The sale price per built square foot is $1,265 and the price per buildable square foot is $500 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 28, 2016, for $775,000. The signatory for Yosef Beer was Yosef Beer. The signatory for Carlyle Group was Carter Martin. This is a two-family.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Carlyle Group purchased 142 properties in 124 transactions for a total of $764.1 million and sold one property in one transaction for a total of $4 million over the past 24 months.
The seller Yosef Beer 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 include Yosef Beer, head officer and Joe Jacobs, officer. The business entity is Jb Covert Llc.

The property

The 237 Covert Street parcel has frontage of 19 feet and is 100 feet deep with a total lot size of 1,975 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 $1.2 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 $1,500 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 four of the eight commercial properties representing 27,636 square feet of the 48,364 square feet. The largest owner is Watermark Capital Group, followed by Elsie Ortiz and then Ben Baum.
On the tax block, there was one new building construction project filed totaling 16,718 square feet. It is a 19-unit, 16,718-square-foot R-2 building developed by Robert Scott with plans filed May 15, 2014.

The majority, or 69 percent of the 48,364 square feet of built space are walkup buildings, with mixed-use buildings next occupying 31 percent of the space.

The buyer

The PincusCo database currently indicates that Carlyle Group owned at least 192 commercial properties in New York City with 2,314,440 square feet and a city-determined market value of $553.3 million. (Market value is typically about 50% of actual value.) The portfolio has $1.1 billion in debt, with top three lenders as Invesco Real Estate, Invesco, and Santander Bank respectively. Within the portfolio, the bulk, or 55 percent of the 2,314,440 square feet of built space are elevator properties, with walkup properties next occupying 13 percent of the space. The bulk, or 41 percent of the built space, is in Brooklyn, with Queens next at 39 percent of the space.

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