Carlyle Group pays $2.5M for two-family in Prospect Lefferts Gardens

Carlyle Group through the entity Townhouse Rental II, L.L.C. paid $2.5 million to Menachem Wilhelm through the entity 30 Lefferts LLC for the two-family building (B9) at 30 Lefferts Avenue in Prospect Lefferts Gardens, Brooklyn.
The deal closed on April 5, 2023 and was recorded on April 7, 2023. The property has 3,108 square feet of built space and 213 square feet of additional air rights for a total buildable of 3,331 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $794 and the price per buildable square foot is $741 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 April 30, 2021, for $1.2 million. The signatory for Menachem Wilhelm was Menachem Wilhelm. 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 146 properties in 128 transactions for a total of $777.7 million and sold one property in one transactions for a total of $4 million over the past 24 months.
The seller Menachem Wilhelm purchased four properties in four transactions for a total of $14 million and had not sold any properties over the same time period. The former owner according to the Department of Housing Preservation and Development is Menachem Wilhelm, individual owner.

The property

The two-family building with 2 residential units in Prospect Lefferts Gardens has 3,108 square feet of built space and 213 square feet of additional air rights for a total buildable of 3,331 square feet according to a PincusCo analysis of city data. The parcel has frontage of 26 feet and is 102 feet deep with a total lot size of 2,665 square feet. The zoning is R5 which allows for up to 1.25 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $1.5 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received nine housing violations and $50 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 $1 million on this tax lot.

The block

On this tax block, PincusCo has identified the owners of seven of the 11 commercial properties representing 436,344 square feet of the 525,279 square feet. The largest owner is Meridian Properties, followed by Meng Chang He and then Lilmor Management.
There are no active new building construction projects on this tax block.

The majority, or 98 percent of the 525,279 square feet of built space are elevator buildings, with mixed-use buildings next occupying 2 percent of the space.

The seller

The PincusCo database currently indicates that Menachem Wilhelm owned at least three commercial properties with 45 residential units in New York City with 44,821 square feet and a city-determined market value of None. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 90 percent of the 44,821 square feet of built space are walkup properties, with specialty properties next occupying 10 percent of the space. They are all located in Brooklyn.

The buyer

The PincusCo database currently indicates that Carlyle Group owned at least 195 commercial properties with 2,006 residential units in New York City with 2,449,230 square feet and a city-determined market value of None. (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 52 percent of the 2,449,230 square feet of built space are elevator properties, with walkup properties next occupying 14 percent of the space. The bulk, or 40 percent of the built space, is in Brooklyn, with Queens next at 37 percent of the space.

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