Carlyle Group pays $3.7M to Barry Septimus for 8-unit walkup in Bed Stuy

Carlyle Group through the entity Brooklyn Townhouse Property Owner, L.L.C. paid $3.7 million to Barry Septimus through the entity 81 Rockaway Realty LLC for midblock eight-unit residential walkup building at 160 Stuyvesant Avenue in Bed Stuy, Brooklyn.
The deal closed on March 21, 2022 and was recorded on March 29, 2022. The property has 5,742 square feet of built space and 260 square feet of additional air rights for a total buildable of 6,000 square feet according to PincusCo analysis of city data. The sale price per built square foot is $649 and the price per buildable square foot is $621 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 27, 2014, for $437,000. The signatory for Barry Septimus was Barry Septimus. The signatory for Carlyle Group was Jason Hart.

Prior sales and revenue

Prior to this transaction, Pincusco has records that the buyer Carlyle Group purchased 10 properties in 10 transactions for a total of $225.6 million and sold one property in one transactions for a total of $9.5 million over the past 24 months.
The seller Barry Septimus had not purchased any other properties and had not sold any properties over the same time period. The former owners according to the Department of Housing Preservation and Development includes Sigmund Fruend, head officer and Sigmund Freund, agent. The business entities are 81 Rockaway Realty Llc and 81 Rockaway Realty Llc.

The property

The 160 Stuyvesant Avenue parcel has frontage of 20 feet and is 100 feet deep with a total lot size of 2,000 square feet. The zoning is R6A which allows for up to 3 times floor area ratio (FAR) for residential with inclusionary housing. The property has a J-51 exemption that started in 2020.0 and expires in 2034.0. The city-designated market value for the property in 2022 is $1 million.

Violations and lawsuits

The property was not involved in any lawsuits or bankruptcies in the past years. In addition, according to city public data, the property has received $1,100 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 neighborhood

In Bed Stuy, the bulk, or 38 percent of the 92.5 million square feet of commercial built space are 1-4 family buildings, with residential elevator buildings next occupying 20 percent of the space. In sales, Bed Stuy has 1.5 times the average sales volume among other neighborhoods with $417.3 million in sales volume in the last two years and is the 6th highest in Brooklyn. For development, Bed Stuy is the 8th most active neighborhood among other neighborhoods. It had 4.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 5 percent of the neighborhood’s built space. There were nine pre-foreclosure suit filed among other residential walkup buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of 11 of the 17 commercial properties representing 63,806 square feet of the 101,826 square feet. The largest owner is Yossel Lichtman, followed by Sigmund Fruend and then Joel Wagshal. There are no active new building construction projects on this tax block.

The majority, or 44 percent of the 235,985 square feet of built space are 1-4 family buildings, with residential walkup buildings next occupying 27 percent of the space.

The seller

The PincusCo database currently indicates that Barry Septimus owned at least two commercial properties with 14,502 square feet and a city-determined market value of $2.2 million. (Market value is typically about 50% of actual value.) The portfolio has $6.7 million in debt, borrowed from Signature Bank. Within the portfolio, all identified are residential walkup properties. They are all located in Brooklyn.

The buyer

The PincusCo database currently indicates that Carlyle Group owned at least 23 commercial properties with 521,111 square feet and a city-determined market value of $108.3 million. (Market value is typically about 50% of actual value.) The portfolio has $314.9 million in debt, with top three lenders as Invesco, Santander Bank, and Citibank respectively. Within the portfolio, the bulk, or 70 percent of the 521,111 square feet of built space are residential elevator properties, with specialty properties next occupying 14 percent of the space. The bulk, or 53 percent of the built space, is in Brooklyn, with Queens next at 47 percent of the space.

Surrounding

PincusCo has not identified any commercial real estate items of interest within a 400-foot radius of 160 Stuyvesant Avenue that occurred over the past 24 months.

Direct link to Acris document. link