Carlyle Group pays $4M for 4-unit in Bedford Stuyvesant

UPDATED: Carlyle Group through the entity Townhouse Rental II, L.L.C. paid $4 million to Beniamin Sadykov through the entity 171 Madison LLC for the four-family building at 171 Madison Street in Bedford Stuyvesant, Brooklyn.
The deal closed on August 15, 2023 and was recorded on August 24, 2023. The property has 4,400 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $909 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 27, 2018, for $1.6 million. The signatory for Beniamin Sadykov was Beniamin Sadykov. The signatory for Carlyle Group was Carter Martin. The contract date was January 11, 2023.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Carlyle Group purchased 179 properties in 161 transactions for a total of $1.1 billion and sold one property in one transaction for a total of $4 million over the past 24 months.
The seller Beniamin Sadykov 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 Beniamin Sadykov, head officer and David Sadykov, site manager. The business entities are 171 Madison Llc and 171 Madison Llc.

The property

The parcel has frontage of 22 feet and is 100 feet deep with a total lot size of 2,199 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 $1 million.

Violations and lawsuits

The property was involved in one lawsuit and zero bankruptcies over the past two years. The suit was a $2 million commercial foreclosure concerning a loan filed on April 21, 2023, by Homeward Opportunities Fund Trust 2020-BPL1 against Benjamin Sadykov. In addition, according to city public data, the property has received $1,000 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on July 13, 2023. 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 two of the 13 commercial properties representing 3,600 square feet of the 31,069 square feet. The two identified owners are Risley Dent Towers and City Of New York.
On the tax block, there were four new building construction projects totaling 17,602 square feet. The largest is a 10-unit, 7,940 square-foot residential (R-2) building submitted by Tomer Erlich with plans filed January 15, 2016 and it has not been permitted yet. The second largest is a three-unit, 4,885 square-foot residential (R-2) building submitted by Michael Gendin with plans filed April 1, 2015 and it has not been permitted yet.

The majority, or 60 percent of the 31,069 square feet of built space are mixed-use buildings, with walkup buildings next occupying 30 percent of the space.

The seller

The PincusCo database currently indicates that Beniamin Sadykov owned at least one commercial property with six residential units in New York City with 4,294 square feet and a city-determined market value of $639,000. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single walkup property. It is located in Brooklyn.

The buyer

The PincusCo database currently indicates that Carlyle Group owned at least 242 commercial properties with 2,388 residential units in New York City with 2,835,456 square feet and a city-determined market value of $736.2 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 52 percent of the 2,835,456 square feet of built space are elevator properties, with walkup properties next occupying 15 percent of the space. The bulk, or 39 percent of the built space, is in Brooklyn, with Queens next at 32 percent of the space.

 

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