Carlyle Group pays $4.8M for 8-unit building in Bedford Stuyvesant

Carlyle Group through the entity Townhouse Rental II, L.L.C. paid $4.8 million to Yossel Lichtman through the entity 550 Van Buren Realty LLC for the eight-unit building at 550 Van Buren Street in Bedford Stuyvesant, Brooklyn.
Carlyle Group is the most active buyer of property in New York City so far this year, PincusCo reported yesterday using data through August 30, 2023.

Joseph Lichtman of 550 Van Buren Realty LLC submitted a major alteration application for a rehab of a three-unit, 2,801 square-foot residential (RES) building at 550 Van Buren Street in Bedford Stuyvesant, Brooklyn. The plan was filed with the New York City Department of Buildings on September 13, 2019 under job number 321597731 and was permitted on November 10, 2020. It calls for the increase in size of the building from a three-story building with 3 dwelling units to a five-story building with 8 dwelling units.

The sale closed on September 29, 2023 and was recorded on October 10, 2023. The property has 5,570 square feet of built space and 133 square feet of additional air rights for a total buildable of 5,700 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $858 and the price per buildable square foot is $838 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 July 25, 2019, for $1.1 million. The signatory for Yossel Lichtman was Yossel Lichtman. The signatory for Carlyle Group was Carter Martin. The contract date was August 14, 2023.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Carlyle Group purchased 188 properties in 170 transactions for a total of $1.1 billion and sold one property in one transactions for a total of $4 million over the past 24 months.
The seller Yossel Lichtman purchased three properties in three transactions for a total of $10.3 million and sold three properties in three transactions for a total of $17.4 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Yossel Lichtman, head officer and Leon Barwacz, site manager. The business entity is 550 Van Buren Realty Llc.

The property

Thebuilding with 3 residential units in Bedford Stuyvesant has 5,570 square feet of built space and 133 square feet of additional air rights for a total buildable of 5,700 square feet according to a PincusCo analysis of city data. The parcel has frontage of 19 feet and is 100 feet deep with a total lot size of 1,900 square feet. The zoning is R6A which allows for up to 3 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $1.3 million.

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 $350 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on September 13, 2022. 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 eight of the 10 commercial properties representing 197,784 square feet of the 206,417 square feet. The largest owner is Tony Fokshner, followed by Stephen Werdiger and then Israel Kozlik.
There are no active new building construction projects on this tax block.

The majority, or 39 percent of the 206,417 square feet of built space are industrial buildings, with elevator buildings next occupying 30 percent of the space.

The seller

The PincusCo database currently indicates that Yossel Lichtman owned at least 31 commercial properties with 238 residential units in New York City with 190,854 square feet and a city-determined market value of $39.8 million. (Market value is typically about 50% of actual value.) The portfolio has $65.8 million in debt, with top three lenders as Valley National Bank, Bank of Princeton, and Customers Bank respectively. Within the portfolio, the bulk, or 82 percent of the 190,854 square feet of built space are walkup properties, with elevator properties next occupying 13 percent of the space. The bulk, or 94 percent of the built space, is in Brooklyn, with Queens next at 6 percent of the space.

The buyer

The PincusCo database currently indicates that Carlyle Group owned at least 250 commercial properties with 2,422 residential units in New York City with 2,795,628 square feet and a city-determined market value of $738.4 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 53 percent of the 2,795,628 square feet of built space are elevator properties, with walkup properties next occupying 16 percent of the space. The bulk, or 41 percent of the built space, is in Brooklyn, with Queens next at 30 percent of the space.

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