Carlyle Group pays $4M to Jacob Fulop for mixed-use in Bushwick

Townhouse Rental II, L.L.C. and Carlyle Group through the entity Townhouse Rental II, L.L.C. paid $4 million to Jacob Fulop through the entity 25 Stanhope St LLC for the four-unit mixed-use building (S4) at 25 Stanhope Street in Bushwick, Brooklyn.
The deal closed on July 21, 2022 and was recorded on August 1, 2022. The property has 3,750 square feet of built space and 695 square feet of additional air rights for a total buildable of 4,449 square feet according to PincusCo analysis of city data. The sale price per built square foot is $1,066 and the price per buildable square foot is $899 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 August 15, 2013, for $1,000,000. The signatory for Jacob Fulop was Jacob Fulop. The signatory for Townhouse Rental II, L.L.C. and Carlyle Group was Carter Martin.

Prior sales and revenue

Prior to this transaction, Pincusco has records that the buyer Townhouse Rental II, L.L.C. purchased 54 properties in 54 transactions for a total of $208.3 million and has no record it sold any properties over the past 24 months.
The seller Jacob Fulop purchased seven properties in seven transactions for a total of $45.7 million and sold five properties in five transactions for a total of $15.8 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Jacob Fulop, head officer and David Solaman, agent. The business entities are 25 Stanhope Street Llc and 25 Stanhope Street Llc.

The property

The 25 Stanhope parcel has frontage of 25 feet and is 73 feet deep with a total lot size of 1,831 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 $727,000.

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 received $175 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on February 15, 2022. There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The neighborhood

In Bushwick, the bulk, or 44 percent of the 33.4 million square feet of commercial built space are walkup buildings, with elevator buildings next occupying 18 percent of the space. In sales, Bushwick has 2.9 times the average sales volume among other neighborhoods with $963.9 million in sales volume in the last two years and is the 3rd highest in Brooklyn. For development, Bushwick has 1.9 times the average amount of major developments relative to other neighborhoods and is the 11th highest in Brooklyn. It had 2 million square feet of commercial and multi-family construction under development in the last two years, which represents 6 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other mixed-use buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of six of the 10 commercial properties representing 31,898 square feet of the 49,848 square feet. The largest owner is Solomon Jacobwitz, followed by Joel Reich and then Andreas Steiner. There are no active new building construction projects on this tax block.

The majority, or 92 percent of the 49,848 square feet of built space are walkup buildings, with mixed-use buildings next occupying 8 percent of the space.

The seller

The PincusCo database currently indicates that Jacob Fulop owned at least 20 commercial properties in New York City with 178,672 square feet and a city-determined market value of $30.2 million. (Market value is typically about 50% of actual value.) The portfolio has $68.6 million in debt, with top three lenders as Bank of Princeton, Bank Leumi, and Broadview Capital respectively. Within the portfolio, the bulk, or 46 percent of the 178,672 square feet of built space are walkup properties, with office properties next occupying 29 percent of the space. The bulk, or 85 percent of the built space, is in Brooklyn, with Manhattan next at 15 percent of the space.

The buyer

The PincusCo database currently indicates that Carlyle Group owned at least 125 commercial properties in New York City with 1,989,819 square feet and a city-determined market value of $478.7 million. (Market value is typically about 50% of actual value.) The portfolio has $897.9 million in debt, with top three lenders as Invesco Real Estate, Invesco, and Santander Bank respectively. Within the portfolio, the bulk, or 63 percent of the 1,989,819 square feet of built space are elevator properties, with rental condo properties next occupying 8 percent of the space. The bulk, or 38 percent of the built space, is in Manhattan, with Queens next at 33 percent of the space.
The PincusCo database currently indicates that Townhouse Rental II, L.L.C. owned at least 35 commercial properties in New York City with 150,357 square feet and a city-determined market value of $36 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 58 percent of the 150,357 square feet of built space are walkup properties, with C0 properties next occupying 24 percent of the space. The bulk, or 81 percent of the built space, is in Brooklyn, with Queens next at 19 percent of the space.

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