Carlyle Group ups walkup debt to $500M with Invesco for 39 properties in NYC

The Carlyle Group through the entity Townhouse Rental, L.L.C. as borrower signed a refinance loan with lender Invesco Real Estate through the entity Invesco CMI Investments, L.P. valued at $500 million for 39 properties including the eight-unit residential walkup building (C1) at 53 3rd Street in Carroll Gardens, Brooklyn, six-unit mixed-use building (S9) at 157 5th Avenue in Park Slope, Brooklyn, and nine-unit residential walkup building (C1) at 193 Chauncey Street in Bed Stuy, Brooklyn. Carlyle has been buying up the properties through entities such as Townhouse Rental II, L.L.C.
The financing added $85.7 million in new debt.
The deal closed on July 1, 2022 and was recorded on July 18, 2022. The 39 properties have about 160,000 square feet of built space and 33,556 square feet of additional air rights for a total buildable of more than 180,740 square feet according to PincusCo analysis of city data. The loan price per built square foot is $3,140 and the price per buildable square foot is $2,766 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.

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 157 5th Avenue.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Gregory Fournier, head officer and Bogdan May, agent. The business entities are McNam Management and 157 5 Ave Llc. Out of the 38 properties, 14 with a total of 159,192 square feet of built space generated revenue of $1.5 million per year.

The property

The 157 5th Avenue parcel has frontage of 30 feet and is 100 feet deep with a total lot size of 3,000 square feet. The zoning is R6A which allows for up to 3 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $3 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 seven DOB violations, $2,050 in ECB penalties, 34 housing violations, and $6,105 in OATH penalties in the last year.

The neighborhood

In Park Slope, the bulk, or 36 percent of the 9.8 million square feet of commercial built space are walkup buildings, with mixed-use buildings next occupying 26 percent of the space. In sales, Park Slope has 1.5 times the average sales volume among other neighborhoods with $476.1 million in sales volume in the last two years and is the 10th highest in Brooklyn. For development, Park Slope has had very little major development activity relative to other neighborhoods.It had 515,705 square feet of commercial and multi-family construction under development in the last two years, which represents 5 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other mixed-use buildings in the past 12 months.

The block

On the tax block of 157 5th Avenue, PincusCo has identified the owners of five of the 15 commercial properties representing 40,410 square feet of the 114,009 square feet. The largest owner is Greenbrook Partners, followed by Townhouse Rental II, L.L.C. and then Conway Capital. There are no active new building construction projects on this tax block.

The majority, or 57 percent of the 114,009 square feet of built space are walkup buildings, with mixed-use buildings next occupying 23 percent of the space.

The borrower

The PincusCo database currently indicates that Carlyle Group owned at least 82 commercial properties in New York City with 1,793,605 square feet and a city-determined market value of $423.1 million. (Market value is typically about 50% of actual value.) The portfolio has $392.6 million in debt, with top three lenders as Invesco, Santander Bank, and Deutsche Bank respectively. Within the portfolio, the bulk, or 69 percent of the 1,793,605 square feet of built space are elevator properties, with rental condo properties next occupying 9 percent of the space. The bulk, or 43 percent of the built space, is in Manhattan, with Queens next at 36 percent of the space.

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