Carlyle Group pays $4.2M for 3-family in Downtown Brooklyn

Carlyle Group through the entity Townhouse Rental II, L.L.C. paid $4.2 million to Aaron Chang through the entity C.A.C. Development LLC for the three-unit 1-4 family building (C0) at 45 Duffield Street in Downtown Brooklyn, Brooklyn.
The deal closed on January 25, 2023 and was recorded on January 27, 2023. The property has 3,915 square feet of built space and 435 square feet of additional air rights for a total buildable of 4,350 square feet according to PincusCo analysis of city data. The sale price per built square foot is $1,072 and the price per buildable square foot is $965 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 January 26, 2017, for $1.9 million. The signatory for Aaron Chang was Aaron Chang. 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 137 properties in 119 transactions for a total of $752.6 million and sold one properties in one transactions for a total of $4 million over the past 24 months.
The seller Aaron Chang 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 Yabin Li, head officer and Medija Bllata, site manager. The business entity is CAC Development LLC.

The property

The 45 Duffield Street parcel has frontage of 21 feet and is 100 feet deep with a total lot size of 2,175 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 $2.1 million.

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 not received any significant violations 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 two of the 10 commercial properties representing 263,646 square feet of the 284,214 square feet. The two identified owners are Bruman Realty and Anthony Lolli.
On the tax block, there was one new building construction project filed totaling 11,268 square feet. It is a 13-unit, 11,268-square-foot R-2 building developed by Yisroel Greenfeld with plans filed May 20, 2022 and it has not been permitted yet.

The majority, or 91 percent of the 284,214 square feet of built space are elevator buildings, with walkup buildings next occupying 7 percent of the space.

The buyer

The PincusCo database currently indicates that Carlyle Group owned at least 170 commercial properties in New York City with 2,053,172 square feet and a city-determined market value of $503.8 million. (Market value is typically about 50% of actual value.) The portfolio has $1 billion in debt, with top three lenders as Invesco Real Estate, Invesco, and Santander Bank respectively. Within the portfolio, the bulk, or 62 percent of the 2,053,172 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 34 percent of the space.

Direct link to Acris document. link