Carlyle Group pays $9.2M to Highpoint Property for 10-unit walkup in Crown Heights

Carlyle Group through the entity Townhouse Rental II, L.L.C. paid $9.2 million to Highpoint Property Group through the entity 1436 Pacific Street Owner LLC for the 10-unit residential walkup building (C1) at 1440 Pacific Street in Crown Heights, Brooklyn.
The deal closed on January 17, 2023 and was recorded on January 24, 2023. The property has 8,764 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $1,044 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 5, 2020, for $7.5 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 134 properties in 116 transactions for a total of $726.7 million and sold one properties in one transactions for a total of $4 million over the past 24 months.
The seller Highpoint Property Group purchased four properties in four transactions for a total of $25.4 million and sold three properties in three transactions for a total of $25.1 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, site manager. The business entity is 1436 Pacific Street Owner Llc (Ny).

The property

The 1440 Pacific Street parcel has frontage of 33 feet and is 100 feet deep with a total lot size of 3,333 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 Historic District. The city-designated market value for the property in 2022 is $373,900.The most recent loan totaled $9.2 million and was provided by East West Bank on November 5, 2020.

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 DOB violations and five housing 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 23 of the 29 commercial properties representing 173,600 square feet of the 201,888 square feet. The largest owner is Winnie Bernier, followed by Wilfred Benoit and then Boruch Okounev.
There are no active new building construction projects on this tax block.

The majority, or 96 percent of the 201,888 square feet of built space are walkup buildings, with mixed-use buildings next occupying 4 percent of the space.

The seller

The PincusCo database currently indicates that Highpoint Property Group owned at least 22 commercial properties in New York City with 172,097 square feet and a city-determined market value of $70.6 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 64 percent of the 172,097 square feet of built space are walkup properties, with mixed-use properties next occupying 19 percent of the space. The bulk, or 52 percent of the built space, is in Manhattan, with Brooklyn next at 48 percent of the space.

The buyer

The PincusCo database currently indicates that Carlyle Group owned at least 167 commercial properties in New York City with 2,032,944 square feet and a city-determined market value of $499.2 million. (Market value is typically about 50% of actual value.) The portfolio has $1 billion 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 2,032,944 square feet of built space are elevator properties, with walkup properties next occupying 14 percent of the space. The bulk, or 43 percent of the built space, is in Brooklyn, with Queens next at 34 percent of the space.

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