Carlyle Group pays $51.2M to Lions Group, Fetner for 363-unit LIC dev site

Carlyle Group through the entity Italic Realty, L.L.C. paid $51.2 million to Lions Group and Fetner Properties for the development site at 26-32 Jackson Avenue in Long Island City, Queens, in three separate transactions. Fetner Properties remains involved in the project evidenced by Hal Fetner signing on behalf of the new Carlyle Group owner entity for a loan. The loan was given by an affiliate of Brookfield Asset Management, BREF VI Holdings LLC, which refinanced a $35.8 million Valley National Bank provided last fall.
The sales closed on April 27, 2023 and were recorded on May 1, 2023.
On the lot, there is one active new building construction project for a 363-unit, 364,819 square-foot residential (R-2) building. The project was submitted by Lions Group and filed by Albert Shirian with plans filed December 9, 2021 and permitted May 13, 2022.

The signatory for Lions Group was Albert Shirian and for Fetner Properties was Hal Fetner. The signatory for Carlyle Group was Jason Hart. Lions Group sold an 81.894% stake, another 11.252% stake and Fetner Properties sold a 6.854% stake, according to the city records.

Carlyle Group is one of the most active buyers in New York City. It just closed two weeks ago with its partner Stonehenge NYC on the purchase of a $114 million, 196-unit rental in Yorkville and almost weekly buys a small walkup in Brooklyn.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Carlyle Group purchased 149 properties in 131 transactions for a total of $786.6 million and sold one property in one transactions for a total of $4 million over the past 24 months.
The seller Lions Group purchased one property in one transaction for a total of $10.9 million and had not sold any properties over the same time period. The 9,612-square-foot property generated revenue of $175,149 or $18 per square foot, according to the most recent income and expense figures.

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, $27,500 in ECB penalties, and $27,500 in OATH penalties in the last year.

The neighborhood

In Long Island City, The bulk, or 32 percent of the 60.1 million square feet of commercial built space are industrial buildings, with elevator buildings next occupying 31 percent of the space. In sales, Long Island City has the 9th highest sale turnover among other neighborhoods in the city with $1.7 billion in sales volume in the last two years. For development, Long Island City is the 4th most active neighborhood among other neighborhoods. It had 9.1 million square feet of commercial and multi-family construction under development in the last two years, which represents 15 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of three of the three commercial properties representing 270,017 square feet of the 270,017 square feet. The largest owner is Rabsky Group, followed by Lions Group and then Fetner Properties.
On the tax block, there was one new building construction project filed totaling 364,819 square feet. It is a 363-unit, 364,819 square-foot residential (R-2) building submitted by Lions Group and filed by Albert Shirian with plans filed December 9, 2021 and permitted May 13, 2022.

The majority, or 96 percent of the 270,017 square feet of built space are elevator buildings, with industrial buildings next occupying 4 percent of the space.

The seller

The PincusCo database currently indicates that Lions Group owned at least 11 commercial properties with 273 residential units in New York City with 345,795 square feet. The portfolio has $195.8 million in debt, with top three lenders as Greystone & Co., Bank Leumi, and Popular Bank respectively. Within the portfolio, the bulk, or 91 percent of the 345,795 square feet of built space are elevator properties, with mixed-use properties next occupying 6 percent of the space. The bulk, or 88 percent of the built space, is in Queens, with Manhattan next at 10 percent of the space.
The PincusCo database currently indicates that Fetner Properties owned at least eight commercial properties with 625 residential units in New York City with 638,489 square feet. The portfolio has $88.5 million in debt, borrowed from Wells Fargo. Within the portfolio, the bulk, or 97 percent of the 638,489 square feet of built space are elevator properties, with industrial properties next occupying 2 percent of the space. The bulk, or 98 percent of the built space, is in Manhattan, with Queens next at 2 percent of the space.

The buyer

The PincusCo database currently indicates that Carlyle Group owned at least 203 commercial properties with 2,264 residential units in New York City with 2,689,192 square feet. The portfolio has $1.1 billion in debt, with top lenders as Invesco Real Estate, and Santander Bank respectively. Within the portfolio, the bulk, or 55 percent of the 2,689,192 square feet of built space are elevator properties, with walkup properties next occupying 14 percent of the space. The bulk, or 36 percent of the built space, is in Brooklyn, with Queens next at 33 percent of the space.

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