Carlyle Group pays $66.2M to Invesco for 74-unit rental in Brooklyn Heights

The Carlyle Group through the entity 75 Clinton Street Owner, L.L.C. paid $66.2 million to Invesco through the entity 75 Clinton Apartments LLC for the 74-unit rental condominium unit at 75 Clinton Street in Brooklyn Heights, Brooklyn.
The deal closed on December 12, 2022 and was recorded on December 20, 2022. The rental property has 78,023 square feet of built space according to PincusCo analysis of city data.
The signatory for Invesco was Chris Cleghorn. The signatory for Carlyle Group was Jason Hart.
To finance the purchase, the Carlyle Group through the entity 75 Clinton Street Owner, L.L.C. as borrower signed an acquisition loan with lender TD Bank valued at $38.6 million.

The transfer records include an ambiguity. The cover pages for the sale transfer as well as the TD Bank loan both include a second tax lot, the retail unit 1001, but that unit is not reflected in the deed or in the mortgage records. That unit, 1001, is only reflected in the cover sheets for both the purchase and the loan. In addition, there is no chain of title transferring the unit 1001 from the prior owner entity Fairway Clinton LLC to an entity associated with Invesco, prior to Invesco’s sale of the residential portion of the building to Carlyle.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Carlyle Group purchased 124 properties in 107 transactions for a total of $638 million and sold one property in one transaction for a total of $4 million over the past 24 months.
The seller Invesco purchased 49 properties in 10 transactions for a total of $332.5 million and had not sold any properties over the same time period.

The property

The 75 Clinton Street parcel has a total lot size of 78,023 square feet. The property has a J-51 exemption that started in 2019 and expires in 2033. The city-designated market value for the property in 2022 is $16.8 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties since September of 2020. In addition, according to city public data, the properties have not received any significant violations 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 the tax block of 75 Clinton Street, PincusCo has identified the owners of four of the 14 commercial properties representing 328,759 square feet of the 1,351,208 square feet. The largest owner is Avery Eisenreich, followed by Treeline Companies and then Midtown Equities.
On the tax block, there was one new building construction project filed totaling 110,000 square feet. It is a 121-unit, 110,000-square-foot R-2 building developed by Aurora Capital Associates Matthew Abreu with plans filed April 1, 2019.

The majority, or 60 percent of the 1.3 million square feet of built space are office buildings, with elevator buildings next occupying 36 percent of the space.

The seller

The PincusCo database currently indicates that Invesco owned at least 42 commercial properties in New York City with 2,197,185 square feet and a city-determined market value of $209 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 81 percent of the 2,197,185 square feet of built space are elevator properties, with office properties next occupying 19 percent of the space. The bulk, or 81 percent of the built space, is in Bronx, with Manhattan next at 19 percent of the space.

The buyer

The PincusCo database currently indicates that Carlyle Group owned at least 156 commercial properties in New York City with 1,994,170 square feet and a city-determined market value of $486.3 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 64 percent of the 1,994,170 square feet of built space are elevator properties, with walkup properties next occupying 13 percent of the space. The bulk, or 42 percent of the built space, is in Brooklyn, with Queens next at 35 percent of the space.

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