Carlyle Group pays $7.3M for two properties in Brooklyn

Carlyle Group pays $7.3 million to two separate sellers in two transactions for two small residential rental properties in Brooklyn.

In the first, Carlyle Group through the entity Townhouse Rental II, L.L.C. paid $4.8 million to Greenbrook Partners through the entity 2 3 St LLC for the two-unit mixed-use building (S9) at 2 3rd Street in Carroll Gardens, Brooklyn.
The deal closed on April 27, 2023 and was recorded on May 4, 2023. The property has 5,384 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $897 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 February 24, 2021, for $2.5 million. The signatory for Greenbrook Partners was Gregory Fournier. The signatory for Carlyle Group was Carter Martin.

In the second, Carlyle Group through the entity Townhouse Rental II, L.L.C. paid $2.5 million to Michael Arounian through the entity 511 M Holdings LLC for the three-unit 1-4 family building (C0) at 511A Monroe St in Bedford Stuyvesant, Brooklyn. The deal closed on April 28, 2023 and was recorded on May 4, 2023. The property has 3,068 square feet of built space and 766 square feet of additional air rights for a total buildable of 3,832 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $811 and the price per buildable square foot is $649 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 November 20, 2018, for $400,000. The signatory for Michael Arounian was Michael Arounian. The signatory for Carlyle Group was Carter Martin. The contract date was July 14, 2022.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Carlyle Group purchased 151 properties in 133 transactions for a total of $840.6 million and sold one property in one transactions for a total of $4 million over the past 24 months.
The seller Greenbrook Partners purchased 41 properties in 41 transactions for a total of $151.1 million and sold 11 properties in 11 transactions for a total of $63.1 million over the same time period. The 5,384-square-foot property generated revenue of $166,958 or $31 per square foot, according to the most recent income and expense figures.

The neighborhood

In Carroll Gardens, The bulk, or 44 percent of the 3.6 million square feet of commercial built space are walkup buildings, with mixed-use buildings next occupying 33 percent of the space. In sales, Carroll Gardens has near average sales volume among other neighborhoods with $308.1 million in sales volume in the last two years and is the 25th highest in Brooklyn. For development, Carroll Gardens has had very little major development activity relative to other neighborhoods.It had 123,802 square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of four of the 15 commercial properties representing 23,287 square feet of the 98,558 square feet. The largest owner is Palmiotto Dominick, followed by Oliver Papraniku and then Greenbrook Partners.
On the tax block, there was one new building construction project filed totaling 5,000 square feet. It is a 82-unit, 5,000 square-foot residential (R-2) building submitted by Shimon Hoffman and filed by Shimon Hoffman with plans filed March 3, 2022 and permitted May 13, 2022.

The majority, or 48 percent of the 98,558 square feet of built space are walkup buildings, with industrial buildings next occupying 37 percent of the space.

The seller

The PincusCo database currently indicates that Greenbrook Partners owned at least 85 commercial properties with 650 residential units in New York City with 615,344 square feet and a city-determined market value of $179.9 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 64 percent of the 615,344 square feet of built space are walkup properties, with mixed-use properties next occupying 12 percent of the space. The bulk, or 98 percent of the built space, is in Brooklyn, with Queens next at 2 percent of the space.

The buyer

The PincusCo database currently indicates that Carlyle Group owned at least 205 commercial properties with 2,267 residential units in New York City with 2,690,577 square feet and a city-determined market value of $682.8 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 55 percent of the 2,690,577 square feet of built space are elevator properties, with walkup properties next occupying 14 percent of the space. The bulk, or 36 percent of the built space, is in Brooklyn, with Queens next at 34 percent of the space.

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