Carlyle Group pays $25.6M to Equity Resource, SNL for storage in Greenwood Heights

Carlyle Group through the entity SS NYC 18th Street, L.L.C. paid $25.6 million to Equity Resource Investments and SNL Storage through the entity SNL XVII, LLC for the industrial building (E7) at 145 18th Street in Greenwood Heights, Brooklyn.
The deal closed on April 12, 2024 and was recorded on April 23, 2024. The property has 76,888 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $332 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 June 15, 2018, for $6.5 million. The signatory for Equity Resource Investments and SNL Storage was Eggert Dagbjartsson. The signatory for Carlyle Group was Wonjoong Kim. The contract date was November 17, 2024. Eggert Dagbjartsson is managing partner at Equity Resource Investments which partnered with SNL on this and other deals.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Carlyle Group purchased 152 properties in 134 transactions for a total of $842 million and sold one property in one transactions for a total of $4 million over the past 24 months.
The seller Equity Resource Investments had not purchased any other properties and sold three properties in three transactions for a total of $77.6 million over the same time period.

The property

The industrial building in Greenwood Heights has 76,888 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 75 feet and is 200 feet deep with a total lot size of 16,577 square feet. The lot is irregular. The zoning is M1-2D which allows for up to 2 times floor area ratio (FAR) for manufacturing. The city-designated market value for the property in 2022 is $10.3 million. The most recent loan totaled $23.5 million and was provided by Saperean Capital on August 7, 2019.

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 six DOB violations and $150 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on November 1, 2022. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The neighborhood

In Greenwood Heights, The bulk, or 37 percent of the 16.2 million square feet of commercial built space are industrial buildings, with specialty buildings next occupying 36 percent of the space. In sales, Greenwood Heights has 1.4 times the average sales volume among other neighborhoods with $401.5 million in sales volume in the last two years and is the 18th highest in Brooklyn. For development, Greenwood Heights has 1.5 times the average amount of major developments relative to other neighborhoods and is the 9th highest in Brooklyn. It had 1.7 million square feet of commercial and multi-family construction under development in the last two years, which represents 10 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other industrial buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of seven of the 18 commercial properties representing 143,143 square feet of the 229,772 square feet. The largest owner is Snl Storage, followed by Ravindra Kumar and then Meridian Properties.
On the tax block, there were four new building construction projects totaling 88,254 square feet. The largest is a 78,076 square-foot educational (E) building submitted by Louis Greco Jr. and filed by Louis Greco Jr. with plans filed October 19, 2017 and permitted December 18, 2020. The second largest is a three-unit, 3,394 square-foot residential (R-2) building submitted by David Lin with plans filed September 23, 2022 and it has not been permitted yet.

The majority, or 49 percent of the 229,772 square feet of built space are industrial buildings, with walkup buildings next occupying 32 percent of the space.

The seller

The PincusCo database currently indicates that SNL Storage owned at least four commercial properties in New York City with 220,142 square feet and a city-determined market value of $23.3 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 87 percent of the 220,142 square feet of built space are industrial properties, with development properties next occupying 13 percent of the space. The bulk, or 65 percent of the built space, is in Brooklyn, with Bronx next at 23 percent of the space.
The PincusCo database currently indicates that Equity Resource Investments owned at least one commercial property in New York City with 49,629 square feet and a city-determined market value of $2.5 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single industrial property. It is located in Bronx.

The buyer

The PincusCo database currently indicates that Carlyle Group owned at least 294 commercial properties with 2,768 residential units in New York City with 3,466,731 square feet and a city-determined market value of $853.4 million. (Market value is typically about 50% of actual value.) The portfolio has $1.2 billion in debt, with top three lenders as Invesco Real Estate, Invesco, and Santander Bank respectively. Within the portfolio, the bulk, or 44 percent of the 3,466,731 square feet of built space are elevator properties, with industrial properties next occupying 20 percent of the space. The bulk, or 45 percent of the built space, is in Brooklyn, with Queens next at 32 percent of the space.

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