Carlyle Group pays $3.7M for rebuilt 6-unit in Bushwick

Carlyle Group through the entity Townhouse Rental II, L.L.C. paid $3.7 million to Ivan Ting through the entity Lu Investors LLC for the six-unit residential rental at 1401 Hancock Street in Bushwick, Brooklyn. The seller enlarged the property from a three-unit building to a six-unit building.
The deal closed on February 10, 2023 and was recorded on February 14, 2023. The property has about 4,860 square feet according to PincusCo analysis of city data. The sale price per built square foot per buildable square foot is $754 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 26, 2020, for $999,999. The signatory for Ivan Ting was Maurice L. Harper. 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 139 properties in 121 transactions for a total of $754.4 million and sold one property in one transaction for a total of $4 million over the past 24 months.
The seller Ivan Ting had not purchased any other properties and had not sold any properties over the same time period.

The property

The 1401 Hancock Street parcel has frontage of 20 feet and is 100 feet deep with a total lot size of 2,000 square feet. 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 $972,000.

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 $75 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on January 5, 2023.

The block

On this tax block, PincusCo has identified the owners of three of the 16 commercial properties representing 11,424 square feet of the 63,764 square feet. The largest owner is RiseBoro Community Partnership, followed by Horizon Group and then Deodat Lowtan.
On the tax block, there were two new building construction projects totaling 13,096 square feet. The largest is a nine-unit, 6,578-square-foot R-2 building developed by David Marom with plans filed November 18, 2020 and permitted April 14, 2021. The second largest is a nine-unit, 6,518-square-foot R-2 building developed by David Marom with plans filed November 18, 2020 and permitted April 21, 2021.

The majority, or 59 percent of the 63,764 square feet of built space are walkup buildings, with mixed-use buildings next occupying 33 percent of the space.

The buyer

The PincusCo database currently indicates that Carlyle Group owned at least 188 commercial properties in New York City with 2,100,222 square feet and a city-determined market value of $523.9 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 61 percent of the 2,100,222 square feet of built space are elevator properties, with walkup properties next occupying 15 percent of the space. The bulk, or 44 percent of the built space, is in Brooklyn, with Queens next at 33 percent of the space.

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