Carlyle Group pays $4.8M for residential walkup in Bedford Stuyvesant

Carlyle Group through the entity Townhouse Rental II, L.L.C. paid $4.8 million to Yecheil Klein also known as Yechiel Klein, through the entity 212 Malcolm X Blvd. LLC for the 10-unit residential walkup building (C1) at 212 Malcolm X Boulevard in Bedford Stuyvesant, Brooklyn.
The deal closed on June 2, 2023 and was recorded on June 16, 2023. The property has 5,603 square feet of built space and 1,899 square feet of additional air rights for a total buildable of 7,497 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $847 and the price per buildable square foot is $633 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 December 21, 2017, for $1.2 million. The signatory for Yecheil A. Klein was Yecheil A. Klein. The signatory for Carlyle Group was Carter Martin. The seller signatory is written Yecheil A. Klein. The owner spelled his name “Yechiel Klein” in a half-dozen loan documents in the chain of title over the past four years.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Carlyle Group purchased 168 properties in 150 transactions for a total of $916.3 million and sold one property in one transactions for a total of $4 million over the past 24 months.
The seller Yechiel A. Klein had not purchased any other properties and had not sold any properties over the same time period. The former owner according to the Department of Housing Preservation and Development is Yecheil Klein, head officer. The business entity is 212 Malcolm X Blvd.

The property

The residential walkup building with 10 residential units in Bedford Stuyvesant has 5,603 square feet of built space and 1,899 square feet of additional air rights for a total buildable of 7,497 square feet according to a PincusCo analysis of city data. The parcel has frontage of 25 feet and is 100 feet deep with a total lot size of 2,499 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 $547,000.

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 one housing violation and $350 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on July 7, 2020. 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 four of the 12 commercial properties representing 15,383 square feet of the 44,098 square feet. The largest owner is Workforce Housing Group, followed by Neighborhood Restore Hdfc and then Katan Group.
On the tax block, there was one new building construction project filed totaling 3,588 square feet. It is a three-unit, 3,588 square-foot residential (R-2) building submitted by Rona Reodica with plans filed March 5, 2019 and permitted March 30, 2023.

The majority, or 61 percent of the 44,098 square feet of built space are walkup buildings, with mixed-use buildings next occupying 39 percent of the space.

The buyer

The PincusCo database currently indicates that Carlyle Group owned at least 231 commercial properties with 2,346 residential units in New York City with 2,798,520 square feet and a city-determined market value of $717.9 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 53 percent of the 2,798,520 square feet of built space are elevator properties, with walkup properties next occupying 15 percent of the space. The bulk, or 38 percent of the built space, is in Brooklyn, with Queens next at 33 percent of the space.

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