Carlyle Group pays $9.2M for three walkups in Brooklyn

The Carlyle Group paid $9.22 million to three separate sellers for three walkups in Brooklyn with a total of 13 residential units.

In the first transaction, Carlyle Group through the entity Townhouse Rental II, L.L.C. paid $4.5 million to Nevo Loubaton through the entity 705 Lafayette LLC for eight-unit residential walkup building (C1) at 705 Lafayette Avenue in Bed Stuy, Brooklyn.
The deal closed on September 15, 2022 and was recorded on September 22, 2022. The property has 5,446 square feet of built space and 560 square feet of additional air rights for a total buildable of 6,000 square feet according to PincusCo analysis of city data. The sale price per built square foot is $826 and the price per buildable square foot is $750 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 1, 2017, for $900,000. The signatory for Nevo Loubaton was Matthew Matatof. The signatory for Carlyle Group was Carter Martin.

In the second, Carlyle Group through the entity Townhouse Rental II, L.L.C. paid $2.7 million to Kelly Wu, Douglas Shapiro, and Jamie Tuan Lin for the three-unit  walkup (C0) at 208A Calyer Street in Greenpoint, Brooklyn. The deal closed on September 14, 2022 and was recorded on September 22, 2022. The property has 2,400 square feet of built space and 49 square feet of additional air rights for a total buildable of 2,450 square feet according to PincusCo analysis of city data. The sale price per built square foot is $1,114 and the price per buildable square foot is $1,091 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 October 10, 2018, for $1.8 million. The signatory for Kelly Wu, Douglas Shapiro, and Jamie Tuan Lin was Kelly Wu, Douglas Shapiro, and Jamie Tuan Lin. The signatory for Carlyle Group was Carter Martin.

In the third, the Carlyle Group through the entity Townhouse Rental II, L.L.C. paid $2 million to David Shaulian through the entity E5l7sh LLC for two-unit building (B9) at 726 Chauncey Street in Bushwick, Brooklyn. The deal closed on September 14, 2022 and was recorded on September 22, 2022. The property has 2,808 square feet of built space and 1,930 square feet of additional air rights for a total buildable of 4,738 square feet according to PincusCo analysis of city data. The sale price per built square foot is $729 and the price per buildable square foot is $432 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 August 15, 2019, for $815,000. The signatory for David Shaulian was David Shaulian. 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 45 properties in 28 transactions for a total of $356.5 million and sold two properties in two transactions for a total of $13.5 million over the past 24 months.
The seller Nevo Loubaton had not purchased any other properties and had not sold any properties over the same time period. The 5,446-square-foot property generated revenue of $189,677 or $35 per square foot, according to the most recent income and expense figures.

The property

The 705 Lafayette Avenue parcel has frontage of 20 feet and is 100 feet deep with a total lot size of 2,000 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 $521,000.

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 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 this tax block, PincusCo has identified the owners of 13 of the 20 commercial properties representing 165,394 square feet of the 195,892 square feet. The largest owner is Northeast Brooklyn Housing Development Corporation, followed by South Bronx Overall Economic Development Corporation and then Laquasia Thomas.
There are four active new building construction projects totaling 21,316 square feet. The largest is a eight-unit, 5,849-square-foot R-2 building developed by Matthew Ahdoot with plans filed December 1, 2014 and it has not been permitted yet.The second largest is a eight-unit, 5,473-square-foot R-2 building developed by Michael Tom with plans filed October 29, 2015 and permitted April 27, 2017.

The majority, or 72 percent of the 195,892 square feet of built space are walkup buildings, with elevator buildings next occupying 23 percent of the space.

The seller

The PincusCo database currently indicates that Nevo Loubaton owned at least one commercial property in New York City with 5,006 square feet and a city-determined market value of $1.2 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single walkup property. It is located in Brooklyn.

The buyer

The PincusCo database currently indicates that Carlyle Group owned at least 150 commercial properties in New York City with 2,122,930 square feet and a city-determined market value of $505.1 million. (Market value is typically about 50% of actual value.) The portfolio has $915.5 million in debt, with top three lenders as Invesco Real Estate, Invesco, and Santander Bank respectively. Within the portfolio, the bulk, or 59 percent of the 2,122,930 square feet of built space are elevator properties, with walkup properties next occupying 11 percent of the space. The bulk, or 36 percent of the built space, is in Manhattan, with Brooklyn next at 33 percent of the space.

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