Carlyle Group pays $3.6M for 7-unit walkup in Bedford Stuyvesant

Carlyle Group through the entity Townhouse Rental II, L.L.C. paid $3.6 million to Joel Waldman and Michael Lefkowitz through the entity 704 M LLC for the seven-unit residential walkup building (C1) at 704 Mac Donough Street in Bedford Stuyvesant, Brooklyn.
Carlyle Group’s purchase closed on February 15, 2023 and was recorded on February 17, 2023. The property has 5,250 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $686 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 May 17, 2004, for $669,500. The signatory for Joel Waldman and Michael Lefkowitz was Leah Waldman. The signatory for Carlyle Group was Carter Martin. Joel Waldman and Michael Lefkowitz each signed as managing member and member, respectively, in old loans. Carlyle Group was the most-active buyer in the city last year by the number of deals, according to PincusCo.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Carlyle Group purchased 140 properties in 122 transactions for a total of $758 million and sold one properties in one transactions for a total of $4 million over the past 24 months.
The seller Joel Waldman purchased three properties in two transactions for a total of $4 million and sold one properties in one transactions for a total of $3.4 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Michael Lefkowitz, head officer and Paul Narango, agent. The business entity is 704 M Llc. The 5,250-square-foot property generated revenue of $99,015 or $19 per square foot, according to the most recent income and expense figures.

The property

The 704 Mac Donough Street parcel has frontage of 25 feet and is 100 feet deep with a total lot size of 2,500 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 $944,000.

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 $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 $5 million on this tax lot.

The block

On this tax block, PincusCo has identified the owners of six of the 10 commercial properties representing 33,727 square feet of the 54,902 square feet. The largest owner is Michael Lefkowitz, followed by Garfield Brown and then Emanuel North.
There are no active new building construction projects on this tax block.

The majority, or 81 percent of the 54,902 square feet of built space are walkup buildings, with mixed-use buildings next occupying 19 percent of the space.

The seller

The PincusCo database currently indicates that Joel Waldman owned at least 12 commercial properties in New York City with 47,808 square feet and a city-determined market value of $7.7 million. (Market value is typically about 50% of actual value.) The portfolio has $39.2 million in debt, with top three lenders as Vernon Capital Funding, NorthEast Community Bank, and S3 Capital respectively. Within the portfolio, the bulk, or 71 percent of the 47,808 square feet of built space are walkup properties, with B2 properties next occupying 14 percent of the space. The bulk, or 71 percent of the built space, is in Brooklyn, with Bronx next at 29 percent of the space.
The PincusCo database currently indicates that Michael Lefkowitz owned at least two commercial properties in New York City with 23,850 square feet and a city-determined market value of $944,000. (Market value is typically about 50% of actual value.) The portfolio has $5.4 million in debt, borrowed from Sterling National Bank. Within the portfolio, the bulk, or 78 percent of the 23,850 square feet of built space are W9 properties, with walkup properties next occupying 22 percent of the space. They are all located in Brooklyn.

The buyer

The PincusCo database currently indicates that Carlyle Group owned at least 190 commercial properties in New York City with 2,306,625 square feet and a city-determined market value of $551.3 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 2,306,625 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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