Carlyle Group signs $49.5M refi for 175-unit rental, down from $63.5M

Carlyle Group through the entity 22-22 Jackson Avenue Owner, L.L.C. as borrower signed a refi loan with lender Invesco through the entity Incref Investments Cb Seller, LLC valued at $49.5 million for the 175-unit residential elevator building (D8) at 22-22 Jackson Avenue in Long Island City, Queens.
The deal closed on December 6, 2024 and was recorded on December 17, 2024. The prior lender was Series 2019-KLU1 which held debt that had an original loan amount of $63.5 million.The property has 167,943 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $294 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 November 10, 2021, for $85 million. The signatory for Carlyle Group was Jade Newburn. The signatory for Invesco was Chris Cleghorn.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Brian Roberts, head officer and Calynne Oyolokor, officer. The business entities are Firstservice Residential and 22- 22 Jackson Avenue Owner Llc.

The property

The residential elevator building with 175 residential units in Long Island City has 167,943 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 100 feet and is 250 feet deep with a total lot size of 25,000 square feet. The zoning is M1-5/R7X which allows for up to 5 times floor area ratio (FAR) for manufacturing and up to 5 times FAR for residential with inclusionary housing. The property has a 421A exemption that started in 2018 and expires in 2043. The city-designated market value for the property in 2022 is $31.1 million. The most recent loan totaled $63.5 million and was provided by Citibank on November 10, 2021. The property has 175 rent regulated units according to city tax records from 2023.

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 one DOB violation, $66,310 in ECB penalties, one housing violation, and $70,210 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on June 6, 2016. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The block

On this tax block, PincusCo has identified the owners of four of the nine commercial properties representing 167,943 square feet of the 171,343 square feet. The largest owner is Carlyle Group, followed by Amtrak and then LIRR.
There are no active new building construction projects on this tax block.

The majority, or 98 percent of the 171,343 square feet of built space are elevator buildings, with retail buildings next occupying 2 percent of the space.

The borrower

The PincusCo database currently indicates that Carlyle Group owned at least 316 commercial properties with 3,740 residential units in New York City with 3,926,951 square feet and a city-determined market value of $917.1 million. (Market value is typically about 50% of actual value.) The portfolio has $651 million in debt, with top three lenders as Invesco, Prudential Financial, and Santander Bank respectively. Within the portfolio, the bulk, or 39 percent of the 3,926,951 square feet of built space are elevator properties, with industrial properties next occupying 27 percent of the space. The bulk, or 46 percent of the built space, is in Brooklyn, with Queens next at 32 percent of the space.

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