Carlyle Group pays $5.3M to Alon Ashourzadeh for mixed-use in Carroll Gardens

Carlyle Group through the entity Townhouse Rental II, L.L.C. paid $5.3 million to Alon Ashourzadeh through the entity 423 Court LLC for the three-unit mixed-use building (S3) at 423 Court Street in Carroll Gardens, Brooklyn.
The deal closed on September 19, 2023 and was recorded on September 22, 2023. The property has 3,200 square feet of built space and 4,366 square feet of additional air rights for a total buildable of 7,572 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $1,670 and the price per buildable square foot is $706 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 24, 2022, for $2.6 million. The signatory for Alon Ashourzadeh was Alon Ashourzadeh. The signatory for Carlyle Group was Carter Martin. The contract date was July 13, 2023.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Carlyle Group purchased 185 properties in 167 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 Alon Ashourzadeh purchased two properties in two transactions for a total of $2.2 million and sold two properties in two transactions for a total of $10 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Alon Ashourzadeh, head officer and Alon Ashour, site manager. The business entity is 423 Court Llc.

The property

The mixed-use building with 3 residential units in Carroll Gardens has 3,200 square feet of built space and 4,366 square feet of additional air rights for a total buildable of 7,572 square feet according to a PincusCo analysis of city data. The parcel has frontage of 20 feet and is 50 feet deep with a total lot size of 2,524 square feet. The lot is irregular. 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 $1.4 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 two housing violations and $50 in OATH 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.

The neighborhood

In Carroll Gardens, The bulk, or 44 percent of the 3.6 million square feet of commercial built space are walkup buildings, with mixed-use buildings next occupying 33 percent of the space. In sales, Carroll Gardens has near average sales volume among other neighborhoods with $378.2 million in sales volume in the last two years and is the 21st highest in Brooklyn. For development, Carroll Gardens has had very little major development activity relative to other neighborhoods.It had 143,950 square feet of commercial and multi-family construction under development in the last two years, which represents 4 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 three of the nine commercial properties representing 16,052 square feet of the 44,671 square feet. The largest owner is Related Companies, followed by Laura Hobgood and then Ink Property Group.
There are no active new building construction projects on this tax block.

The majority, or 58 percent of the 44,671 square feet of built space are walkup buildings, with mixed-use buildings next occupying 42 percent of the space.

The seller

The PincusCo database currently indicates that Alon Ashourzadeh owned at least 14 commercial properties with 63 residential units in New York City with 85,325 square feet and a city-determined market value of $20 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 30 percent of the 85,325 square feet of built space are mixed-use properties, with walkup properties next occupying 22 percent of the space. The bulk, or 54 percent of the built space, is in Brooklyn, with Bronx next at 32 percent of the space.

The buyer

The PincusCo database currently indicates that Carlyle Group owned at least 247 commercial properties with 2,414 residential units in New York City with 2,785,188 square feet and a city-determined market value of $733.6 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 2,785,188 square feet of built space are elevator properties, with walkup properties next occupying 16 percent of the space. The bulk, or 40 percent of the built space, is in Brooklyn, with Queens next at 30 percent of the space.

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