Carlyle Group signs $93M refi with Invesco for two rental properties in East Harlem

Carlyle Group through the entity Bdg Gotahm Affordable, LLC as borrower signed a refi loan with lender Invesco through the entity Invesco Cmi Investments, Lp valued at $93 million for two rental properties including the 186-unit rental condo at 158 East 126th Street in East Harlem, Manhattan and 47-unit rental condo at 158 East 126th Street in East Harlem, Manhattan.
The deal closed on December 30, 2021 and was recorded on March 14, 2022. The prior lender was AIG which held debt that had an original loan amount of $84.7 million. The two properties have 168,492 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $551 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 David J. Kaplan.

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 158 East 126th Street.

The property

The 158 East 126th Street parcel has a total lot size of 134,511 square feet. The city-designated market value for the property in 2022 is $21.5 million. The most recent loan totaled $77.5 million and was provided by AIG on August 27, 2020.

Violations and lawsuits

The properties were not involved in any lawsuits or bankruptcies in the past years. In addition, according to city public data, the properties have not received any significant violations in the last year.

Development

For the tax lot buildings, one out of the two buildings received an 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 158 East 126th Street, PincusCo has identified the owners of 16 of the 29 commercial properties representing 678,587 square feet of the 1,363,146 square feet. The largest owner is Blumenfeld Development Group, followed by BLDG Management and then Edward Ostad. There are two active new building construction projects totaling 627,781 square feet. The largest is a 233-unit, 473,435-square-foot R-2 building developed by David Blumenfeld with plans filed December 18, 2014 and permitted February 13, 2017. The second largest is a 211-unit, 154,346-square-foot R-2 building developed by Jorge Diaz with plans filed December 18, 2015 and permitted August 31, 2017.

The majority, or 47 percent of the 676,519 square feet of built space are D7 buildings, with office buildings next occupying 34 percent of the space.

The borrower

The PincusCo database, which is incomplete, currently has records that Carlyle Group owned at least 22 commercial properties with 441,506 square feet and a city-determined market value of $100 million. (Market value is typically about 50% of actual value.) The portfolio has $221.9 million in debt, with top three lenders as Santander Bank, Citibank, and Walker & Dunlop respectively. Within the portfolio, the bulk, or 82 percent of the 441,506 square feet of built space are residential elevator properties, with 1-4 family properties next occupying 7 percent of the space. The bulk, or 61 percent of the built space, is in Brooklyn, with Queens next at 39 percent of the space.

Surrounding

Within a 400-foot radius of 158 East 126th Street, Pincusco identified five commercial real estate items of interests occurred over the past 24 months.
Of those five items, one was in new building development. It was a new building permit application filed on April 8, 2020 for a 354,350-square-foot B building at 180 East 125th Street.
Of those five items, four were loans above $5 million totaling $59.6 million. The most recent of the four was Blumenfeld Development Group which borrowed $32 million from Invesco secured by one condo unit in the 28,104-square-foot, 236-unit mixed-use building (RM) on 159 East 125th Street on February 11, 2022.

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