Carlyle Group signs $18M refi loan with Prudential for storage in Windsor Terrace

Carlyle Group through the entity 72 Caton Place Owner, L.L.C. as borrower signed a refi loan with lender Prudential Financial through the entity PGIM Real Estate U.S. Debt Fund REIT, LLC valued at $18 million for the storage building (E7) at 72 Caton Place in Windsor Terrace, Brooklyn.
The deal closed on March 27, 2024 and was recorded on April 1, 2024. The prior lender was Bank OZK which held debt that had an original loan amount of $40 million.The property has 168,034 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $107 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 owner bought the property on May 24, 2018, for $23 million. The signatory for Carlyle Group was Jason Hart. The signatory for Prudential Financial was Stephen Bailey.

The property

The industrial building in Windsor Terrace has 168,034 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 232 feet and is 104 feet deep with a total lot size of 20,750 square feet. The lot is irregular. The zoning is C8-2 which allows for up to 2 times floor area ratio (FAR) for commercial. The city-designated market value for the property in 2022 is $23.6 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received $375 in OATH penalties in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The neighborhood

In Windsor Terrace, The bulk, or 43 percent of the 2.6 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 28 percent of the space. In sales, Windsor Terrace has had very little sales volume relative to other neighborhoods with $92.5 million in sales volume in the last two years. For development, Windsor Terrace has had very little major development activity relative to other neighborhoods.It had 82,443 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 three of the eight commercial properties representing 1,922 square feet of the 257,136 square feet. The largest owner is Canam Capital Partners, followed by Bolla Oil and then Aview Equities.
On the tax block, there were two new building construction projects totaling 420,735 square feet. The largest is a 375-unit, 308,136 square-foot residential (R-2) building submitted by JEMB Realty and filed by Morris Jerome with plans filed September 16, 2021 and permitted January 4, 2024. The second largest is a 131-unit, 112,599 square-foot residential (R-2) building submitted by Aview Equities and filed by Abraham Leifer with plans filed May 18, 2021 and permitted April 15, 2022.

The majority, or 66 percent of the 257,136 square feet of built space are industrial buildings, with specialty buildings next occupying 33 percent of the space.

The borrower

The PincusCo database currently indicates that Carlyle Group owned at least 289 commercial properties with 2,753 residential units in New York City with 3,252,848 square feet and a city-determined market value of $821.5 million. (Market value is typically about 50% of actual value.) The portfolio has $1.2 billion in debt, with top three lenders as Invesco Real Estate, Invesco, and Santander Bank respectively. Within the portfolio, the bulk, or 47 percent of the 3,252,848 square feet of built space are elevator properties, with walkup properties next occupying 15 percent of the space. The bulk, or 41 percent of the built space, is in Brooklyn, with Queens next at 34 percent of the space.

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