Carlyle Group signs $19M loan with Invesco for 34 properties in Brooklyn, part of existing $500M agreement

Carlyle Group through the entity Townhouse Rental, L.L.C. as borrower signed a loan with lender Invesco through the entity Invesco CMI Investments, L.P. valued at $18.96 million for 34 properties including the eight-unit residential walkup building (C1) at 705 Lafayette Avenue in Bedford Stuyvesant, Brooklyn, four-unit 1-4 family building (C3) at 82 Clinton Avenue in Clinton Hill, Brooklyn, and four-unit 1-4 family building (C3) at 414 Henry Street in Cobble Hill, Brooklyn.
The deal closed on February 1, 2023 and was recorded on February 10, 2023. The 34 properties have 100,029 square feet of built space and 39,009 square feet of additional air rights for a total buildable of 136,868 square feet according to PincusCo analysis of city data. The loan price per built square foot is $189 and the price per buildable square foot is $138 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 signatory for Carlyle Group was Jason Hart.

In July 2022, Carlyle Group and borrower and Invesco as lender recorded a loan agreement of up to $500 million, and this $18.96 million is a subset of that loan. This subset is from Tranche VIII Advance, which totaled $21.3 million.

Carlyle Group was the most active buyer by the number of transactions last year, and the 10th most active by dollar volume, according to a PincusCo analysis.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 414 Henry Street.

The property

The 414 Henry Street parcel has frontage of 20 feet and is 78 feet deep with a total lot size of 1,560 square feet. The lot is irregular. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The property is in the Cobble Hill Historic District. The city-designated market value for the property in 2022 is $2.5 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 received three DOB violations, 63 housing violations, and $12,310 in OATH penalties in the last year.

Development

For the tax lot buildings, 11 out of the 34 buildings received a initial certificate of occupancy in the last ten years. 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 414 Henry Street, PincusCo has identified the owners of two of the seven commercial properties representing 4,320 square feet of the 21,543 square feet. The two identified owners are Lori Falco Greenberg and City of New York.
There are no active new building construction projects on this tax block.

The majority, or 57 percent of the 21,108 square feet of built space are mixed-use buildings, with walkup buildings next occupying 43 percent of the space.

The borrower

The PincusCo database currently indicates that Carlyle Group owned at least 173 commercial properties in New York City with 2,065,691 square feet and a city-determined market value of $508 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 62 percent of the 2,065,691 square feet of built space are elevator properties, with walkup properties next occupying 15 percent of the space. The bulk, or 44 percent of the built space, is in Brooklyn, with Queens next at 33 percent of the space.

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