Carlyle Group pays $5.3M to Highpoint Property Group for residential walkup in Bedford-Stuyvesant
Carlyle Group through the entity Townhouse Rental II, L.L.C. paid $5.3 million to Highpoint Property Group through the entity Hpg 820 Marcy Owner LLC for six-unit residential walkup building (C2) at 820 Marcy Avenue in Bedford-Stuyvesant, Brooklyn.
The deal closed on October 11, 2022 and was recorded on October 17, 2022. The property has 6,075 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $876 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 July 12, 2017, for $2 million. The signatory for Highpoint Property Group was Drew Popkin. 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 54 properties in 37 transactions for a total of $389.2 million and sold two properties in two transactions for a total of $13.5 million over the past 24 months.
The seller Highpoint Property Group purchased six properties in five transactions for a total of $33 million and sold one property in one transaction for a total of $13.2 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Drew Popkin, head officer and Cory Chestman, site manager. The business entity is Hpg 820 Marcy Owner Llc.
The property
The 820 Marcy Avenue parcel has frontage of 27 feet and is 100 feet deep with a total lot size of 2,700 square feet. The zoning is R6B which allows for up to 2 times floor area ratio (FAR) for residential with inclusionary housing. The property is in the Bedford Historic District. The city-designated market value for the property in 2022 is $1 million.
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 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 $5 million on this tax lot.
The block
On this tax block, PincusCo has identified the owners of eight of the 13 commercial properties representing 52,450 square feet of the 61,114 square feet. The largest owner is Bridge Street Development Corporation, followed by Highpoint Property Group and then Eustace Lashley.
On the tax block, there was one new building construction project filed totaling 10,466 square feet. It is a eight-unit, 10,466-square-foot R-2 building developed by Sasha Mehdyzadeh with plans filed June 14, 2018 and it has not been permitted yet.
The majority, or 91 percent of the 61,114 square feet of built space are walkup buildings, with mixed-use buildings next occupying 9 percent of the space.
The seller
The PincusCo database currently indicates that Highpoint Property Group owned at least 24 commercial properties in New York City with 185,688 square feet and a city-determined market value of $73 million. (Market value is typically about 50% of actual value.) The portfolio has $104.4 million in debt, with top three lenders as East West Bank, Bank Leumi, and IberiaBank respectively. Within the portfolio, the bulk, or 67 percent of the 185,688 square feet of built space are walkup properties, with mixed-use properties next occupying 18 percent of the space. The bulk, or 52 percent of the built space, is in Brooklyn, with Manhattan next at 48 percent of the space.
The buyer
The PincusCo database currently indicates that Carlyle Group owned at least 184 commercial properties in New York City with 2,226,054 square feet and a city-determined market value of $546.7 million. (Market value is typically about 50% of actual value.) The portfolio has $995.5 million in debt, with top three lenders as Invesco Real Estate, Invesco, and Santander Bank respectively. Within the portfolio, the bulk, or 56 percent of the 2,226,054 square feet of built space are elevator properties, with walkup properties next occupying 11 percent of the space. The bulk, or 35 percent of the built space, is in Brooklyn, with Manhattan next at 34 percent of the space.
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