Carlyle Group pays $6.2M to Greenbrook Partners for mixed-use in Park Slope

Carlyle Group through the entity Townhouse Rental, L.L.C. paid $6.2 million to Greenbrook Partners through the entity 370 5 Ave, LLC for the four-unit mixed-use building (S4) at 370 5th Avenue in Park Slope, Brooklyn.
The deal closed on May 25, 2023 and was recorded on June 5, 2023. The property has 5,169 square feet of built space and 2,254 square feet of additional air rights for a total buildable of 7,431 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $1,194 and the price per buildable square foot is $830 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 April 26, 2022, for $3.6 million. The signatory for Greenbrook Partners was Gregory Fournier. The signatory for Carlyle Group was Carter Martin.
Carlyle Group has purchased at least 19 properties from Greenbrook Partners, a PincusCo analysis shows, for a total of $112 million.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Carlyle Group purchased 162 properties in 144 transactions for a total of $886.1 million and sold one property in one transactions for a total of $4 million over the past 24 months.
The seller Greenbrook Partners purchased 39 properties in 39 transactions for a total of $144 million and sold 16 properties in 16 transactions for a total of $90.1 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Prashanth Rayapudi, head officer and Dinara Igimbayeva, site manager. The business entity is 370 5 Ave Llc. The 5,169-square-foot property generated revenue of $160,291 or $31 per square foot, according to the most recent income and expense figures.

The property

The mixed-use building with 4 residential units in Park Slope has 5,169 square feet of built space and 2,254 square feet of additional air rights for a total buildable of 7,431 square feet according to a PincusCo analysis of city data. The parcel has frontage of 25 feet and is 97 feet deep with a total lot size of 2,477 square feet. 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 $2 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 one DOB violation 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 Park Slope, The bulk, or 36 percent of the 9.8 million square feet of commercial built space are walkup buildings, with mixed-use buildings next occupying 26 percent of the space. In sales, Park Slope has 2 times the average sales volume among other neighborhoods with $693.2 million in sales volume in the last two years and is the 7th highest in Brooklyn. For development, Park Slope has had very little major development activity relative to other neighborhoods.It had 558,449 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.

The block

On this tax block, PincusCo has identified the owners of two of the eight commercial properties representing 10,881 square feet of the 152,850 square feet. The two identified owners are Greenbrook Partners and Goldstein Adam.
There are no active new building construction projects on this tax block.

The majority, or 68 percent of the 152,850 square feet of built space are elevator buildings, with mixed-use buildings next occupying 23 percent of the space.

The seller

The PincusCo database currently indicates that Greenbrook Partners owned at least 81 commercial properties with 624 residential units in New York City with 594,969 square feet and a city-determined market value of $173.9 million. (Market value is typically about 50% of actual value.) The portfolio has $274.6 million in debt, with top three lenders as Invesco Real Estate, Rialto Capital Management, and Signature Bank respectively. Within the portfolio, the bulk, or 63 percent of the 594,969 square feet of built space are walkup properties, with mixed-use properties next occupying 12 percent of the space. They are all located in Brooklyn.

The buyer

The PincusCo database currently indicates that Carlyle Group owned at least 220 commercial properties with 2,312 residential units in New York City with 2,760,647 square feet and a city-determined market value of $700.6 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 2,760,647 square feet of built space are elevator properties, with walkup properties next occupying 14 percent of the space. The bulk, or 37 percent of the built space, is in Brooklyn, with Queens next at 33 percent of the space.

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