Carlyle Group pays $6.5M to Highpoint Property Group for residential walkup in Crown Heights
Carlyle Group through the entity Townhouse Rental II, L.L.C. paid $6.5 million to Highpoint Property Group through the entity Hpg 915 Sjp LLC for eight-unit residential walkup building (C1) at 915 Saint Johns Place in Crown Heights, Brooklyn.
The deal closed on October 11, 2022 and was recorded on October 18, 2022. The property has 7,516 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $866 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 24, 2017, for $3.1 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 56 properties in 39 transactions for a total of $396.8 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 two properties in two transactions for a total of $18.6 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, agent. The business entities are Mccallister Management Llc and Hpg 915 Sjp Llc. The 7,516-square-foot property generated revenue of $141,752 or $19 per square foot, according to the most recent income and expense figures.
The property
The 915 Saint Johns Place parcel has frontage of 22 feet and is 100 feet deep with a total lot size of 2,275 square feet. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The property is in the Crown Heights North II Historic District. 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 since September of 2020. In addition, according to city public data, the property has received five housing violations and $1,550 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 26 of the 38 commercial properties representing 168,384 square feet of the 231,241 square feet. The largest owner is Jay Lubin, followed by Jay Gold and then Itche Skoblo.
There are no active new building construction projects on this tax block.
The majority, or 85 percent of the 231,241 square feet of built space are walkup buildings, with mixed-use buildings next occupying 15 percent of the space.
The seller
The PincusCo database currently indicates that Highpoint Property Group owned at least 23 commercial properties in New York City with 179,613 square feet and a city-determined market value of $72 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 66 percent of the 179,613 square feet of built space are walkup properties, with mixed-use properties next occupying 18 percent of the space. The bulk, or 50 percent of the built space, is in Manhattan, with Brooklyn next at 50 percent of the space.
The buyer
The PincusCo database currently indicates that Carlyle Group owned at least 186 commercial properties in New York City with 2,234,879 square feet and a city-determined market value of $548.1 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 2,234,879 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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