Carlyle Group pays $6.8M for walkup in Bushwick, in Bed-Stuy

The Carlyle Group paid $6.8 million for two walkups, one in Bushwick and one in Bedford-Stuyvesant, in two separate transactions to two sellers.

In the larger, Carlyle Group through the entity Townhouse Rental II, L.L.C. paid $4.2 million to Joel Fried through the entity RF Willoughby Holdings LLC for the six-unit residential walkup building (C2) at 1137 Willoughby Avenue in Bushwick, Brooklyn.
The deal closed on September 6, 2022 and was recorded on September 16, 2022. The property has 4,350 square feet of built space and 1,725 square feet of additional air rights for a total buildable of 6,075 square feet according to PincusCo analysis of city data. The sale price per built square foot is $965 and the price per buildable square foot is $691 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 June 19, 2013, for $685,000. The signatory for Joel Fried was Joel Fried. The signatory for Carlyle Group was Carter Martin.

In the second, Carlyle Group through the entity Townhouse Rental II, L.L.C. paid $2.6 million to Stephen Ho through the entity 743 Putnam LLC for three-unit 1-4 family building (C0) at 743 Putnam Avenue in Bed Stuy, Brooklyn. The deal closed on September 7, 2022 and was recorded on September 16, 2022. The property has 3,284 square feet of built space and 365 square feet of additional air rights for a total buildable of 3,650 square feet according to PincusCo analysis of city data. The sale price per built square foot is $803 and the price per buildable square foot is $723 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 June 16, 2021, for $1.5 million. The signatory for Stephen Ho was Nicoleta Christodoulou. 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 37 properties in 21 transactions for a total of $358.8 million and sold two properties in two transactions for a total of $13.5 million over the past 24 months.
The seller Joel Fried had not purchased any other properties and sold one properties in one transactions for a total of $8.4 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Abe Rutler, head officer and Frank Rivera, site manager. The business entity is Rf Willoughby Holding Llc.

The property

The 1137 Willoughby Avenue parcel has frontage of 25 feet and is 100 feet deep with a total lot size of 2,500 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 $919,000.

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 five housing violations and $1,800 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on July 20, 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 block

On this tax block, PincusCo has identified the owners of 18 of the 36 commercial properties representing 152,975 square feet of the 218,530 square feet. The largest owner is Watermark Capital Group, followed by Isaac R. Khafif and then Jacob Rubin.
There are three active new building construction projects totaling 33,981 square feet. The largest is a 32-unit, 23,000-square-foot R-2 building developed by Adam Smith with plans filed May 7, 2015 and permitted April 12, 2017. The second largest is a eight-unit, 5,500-square-foot R-2 building developed by Gina Sita with plans filed February 25, 2014 and it has not been permitted yet.

The majority, or 41 percent of the 218,530 square feet of built space are walkup buildings, with elevator buildings next occupying 37 percent of the space.

The seller

The PincusCo database currently indicates that Joel Fried owned at least six commercial properties in New York City with 45,979 square feet and a city-determined market value of $7.4 million. (Market value is typically about 50% of actual value.) The portfolio has $6 million in debt, borrowed from SBT Advantage Bank. Within the portfolio, all identified are walkup properties. They are all located in Brooklyn.

The buyer

The PincusCo database currently indicates that Carlyle Group owned at least 128 commercial properties in New York City with 1,998,588 square feet and a city-determined market value of $482.3 million. (Market value is typically about 50% of actual value.) The portfolio has $905.7 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 1,998,588 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.

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