Carlyle Group pays $4M for 6-unit walkup in Bushwick

The Carlyle Group through the entity Townhouse Rental II, L.L.C. paid $4 million to Ran Michaeli through the entity 1238 Hancock St LLC for the six-unit residential walkup building (C2) at 1238 Hancock Street in Bushwick, Brooklyn.
The deal closed on April 12, 2023 and was recorded on April 18, 2023. The property has 4,572 square feet of built space and 280 square feet of additional air rights for a total buildable of 4,860 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $879 and the price per buildable square foot is $827 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 14, 2021, for $640,000, then built the new six-unit building based on plans filed in 2021. The signatory for Ran Michaeli was Ran Michaeli. 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 147 properties in 129 transactions for a total of $780.2 million and sold one property in one transactions for a total of $4 million over the past 24 months.
The seller Ran Michaeli purchased one property in one transaction for a total of $1.8 million and had not sold any properties over the same time period.

The property

The residential walkup building with 6 residential units in Bushwick has 4,572 square feet of built space and 280 square feet of additional air rights for a total buildable of 4,860 square feet according to a PincusCo analysis of city data. The 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 $200,000.

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 $2,500 in ECB penalties in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot. On the tax lot, the most recent condominium plan was filed by 1238 HANCOCK ST LLC to create 6 residential units in a building at 1238 Hancock Street in Bushwick, Brooklyn, called 496 Wilson Avenue Condominiumthat has a $4.2 million sellout, according to an April 4, 2022 submission to the New York State Attorney General. The principal of the sponsor, 1238 HANCOCK ST LLC, was Ran Michaeli.

The block

On this tax block, PincusCo has identified the owners of three of the seven commercial properties representing 15,600 square feet of the 37,148 square feet. The two identified owners are Yehuda Kohn and Joel Jacobowitz.
On the tax block, there was one new building construction project filed totaling 5,864 square feet. It is a eight-unit, 5,864 square-foot residential (R-2) building submitted by Ohad Meishar with plans filed August 8, 2017 and permitted December 27, 2017.

The majority, or 71 percent of the 37,148 square feet of built space are walkup buildings, with mixed-use buildings next occupying 29 percent of the space.

The seller

The PincusCo database currently indicates that Ran Michaeli owned at least one commercial property in New York City. The portfolio consists of at least a single industrial property.

The buyer

The PincusCo database currently indicates that Carlyle Group owned at least 196 commercial properties with 2,008 residential units in New York City with 2,452,338 square feet. The portfolio has $1.1 billion in debt, with top lenders as Invesco Real Estate, and Santander Bank respectively. Within the portfolio, the bulk, or 52 percent of the 2,452,338 square feet of built space are elevator properties, with walkup properties next occupying 14 percent of the space. The bulk, or 40 percent of the built space, is in Brooklyn, with Queens next at 36 percent of the space.

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