Carlyle Group pays $2.6M for 3-unit walkup in Bushwick

The Carlyle Group through the entity Townhouse Rental II, L.L.C. paid $2.6 million to Joseph Aghelian through the entity 1409 Greene LLC for the three-unit building (C0) at 1409 Greene Avenue in Bushwick, Brooklyn.
The deal closed on October 18, 2022 and was recorded on October 24, 2022. The property has 3,552 square feet of built space and 1,497 square feet of additional air rights for a total buildable of 5,054 square feet according to PincusCo analysis of city data. The sale price per built square foot is $746 and the price per buildable square foot is $524 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 February 24, 2021, for $1 million. The signatory for Joseph Aghelian was Joseph Aghelian. 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 57 properties in 40 transactions for a total of $403.4 million and sold two properties in two transactions for a total of $13.5 million over the past 24 months.
The seller Joseph Aghelian had not purchased any other properties and sold two properties in two transactions for a total of $4.5 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Joe Gheliana, head officer and Arnaldo Vargas, agent. The business entity is 1409greenellc.

The property

The 1409 Greene Avenue parcel has frontage of 20 feet and is 104 feet deep with a total lot size of 2,080 square feet. The lot is irregular. 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 received four housing 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 15 of the 38 commercial properties representing 68,038 square feet of the 173,454 square feet. The largest owner is Steven Goldschmied, followed by Gilbert Berookhim and then George Chiou.
On the tax block, there was one new building construction project filed totaling 5,353 square feet. It is a seven-unit, 5,353-square-foot R-2 building developed by Josiane Lai with plans filed January 24, 2018 and it has not been permitted yet.

The majority, or 68 percent of the 173,454 square feet of built space are walkup buildings, with mixed-use buildings next occupying 20 percent of the space.

The buyer

The PincusCo database currently indicates that Carlyle Group owned at least 187 commercial properties in New York City with 2,242,395 square feet and a city-determined market value of $549.6 million. (Market value is typically about 50% of actual value.) The portfolio has $995.5 million in debt, with top three lenders as Invesco Real Estate, Invesco, and Santander Bank respectively. Within the portfolio, the bulk, or 56 percent of the 2,242,395 square feet of built space are elevator properties, with walkup properties next occupying 11 percent of the space. The bulk, or 35 percent of the built space, is in Brooklyn, with Manhattan next at 34 percent of the space.

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