Carlyle Group pays $3.2M for 6-unit walkup in Bedford Stuyvesant

Carlyle Group through the entity Townhouse Rental II, L.L.C. paid $3.2 million to Chaim Halberstam and Benzion S. Lerner through the entity 385 Chauncey LLC for the six-unit residential walkup building (C2) at 385 Chauncey Street in Bedford Stuyvesant, Brooklyn.
The deal closed on October 30, 2023 and was recorded on November 3, 2023. The property has 5,460 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $586 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 November 30, 2015, for $1.1 million. The signatory for Chaim Halberstam and Benzion S. Lerner was Chaim Halberstam and Benzion S. Lerner. The signatory for Carlyle Group was Carter Martin. The contract date was October 30, 2023.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Carlyle Group purchased 193 properties in 175 transactions for a total of $1.1 billion  over the past 24 months.
The seller Chaim Halberstam purchased one property in one transaction for a total of $3.7 million and sold one property in one transaction for a total of $4.3 million over the same time period. The former owner according to the Department of Housing Preservation and Development is Zach Spira, head officer. The business entity is 385 Chauncey LLC.

The property

The residential walkup building with 6 residential units in Bedford Stuyvesant has 5,460 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 26 feet and is 100 feet deep with a total lot size of 2,600 square feet. The zoning is R6B which allows for up to 2 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $881,000.

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 two 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 14 of the 24 commercial properties representing 80,327 square feet of the 127,671 square feet. The largest owner is Yossel Lichtman, followed by Northeast Brooklyn Housing Development Corporation and then Mordechai Koslowitz.
There are no active new building construction projects on this tax block.

The majority, or 76 percent of the 127,671 square feet of built space are walkup buildings, with mixed-use buildings next occupying 24 percent of the space.

The seller

The PincusCo database currently indicates that Chaim Halberstam owned at least seven commercial properties with 47 residential units in New York City with 57,054 square feet and a city-determined market value of $8.2 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 57 percent of the 57,054 square feet of built space are walkup properties, with office properties next occupying 31 percent of the space. They are all located in Brooklyn.

The buyer

The PincusCo database currently indicates that Carlyle Group owned at least 264 commercial properties with 2,642 residential units in New York City with 2,900,785 square feet and a city-determined market value of $764.9 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 53 percent of the 2,900,785 square feet of built space are elevator properties, with walkup properties next occupying 15 percent of the space. The bulk, or 43 percent of the built space, is in Brooklyn, with Queens next at 29 percent of the space.

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