Carlyle signs $83M acquisition loan with Prudential for storage in NYC

Carlyle Group through the entity SS NYC 121st Street, L.L.C. (and others) as borrower signed an acquisition loan with lender Prudential Financial through the entity the Prudential Insurance Company of America valued at $83 million for four industrial properties including the industrial building (E7) at 87-16 121st Street in Richmond Hill, Queens, industrial building (E7) at 145 18th Street in Greenwood Heights, Brooklyn, and industrial building (E7) at 1690 East New York Avenue in Brownsville, Brooklyn.
The deal closed on April 12, 2024 and was recorded on April 30, 2024. The prior lender was Saperean Capital which held debt that had an original loan amount of $73.2 million.
The four properties have 329,210 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $252 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 Wonjoong Kim. The signatory for Prudential Financial was Stephen Bailey.

Prior sales and revenue

Out of the four properties, one with a total of 329,210 square feet of built space generated revenue of $927,406 per year.

The property

The industrial building in Richmond Hill has frontage of 80 feet and is 230 feet deep with a total lot size of 24,700 square feet. The lot is irregular. The zoning is M1-5 which allows for up to 5 times floor area ratio (FAR) for manufacturing. The city-designated market value for the property in 2022 is $12.9 million. The most recent loan totaled $33.7 million and was provided by Saperean Capital on October 23, 2019.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received 10 DOB violations and $150 in OATH penalties in the last year.

The neighborhood

In Richmond Hill, The bulk, or 26 percent of the 6.4 million square feet of commercial built space are industrial buildings, with specialty buildings next occupying 20 percent of the space. In sales, Richmond Hill has had very little sales volume relative to other neighborhoods with $127.7 million in sales volume in the last two years. For development, Richmond Hill has had very little major development activity relative to other neighborhoods. It had 167,417 square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space.

The block

On the tax block of 87-16 121st Street, PincusCo has identified the owners of eight of the 13 commercial properties representing 284,635 square feet of the 310,208 square feet. The largest owner is Rodolfo Fuertes, followed by NYC School Construction Authority and then LIRR.
There are no active new building construction projects on this tax block.

The majority, or 100 percent of the 310,208 square feet of built space are industrial buildings, with specialty buildings next occupying 0 percent of the space.

The borrower

The PincusCo database currently indicates that Carlyle Group owned at least 302 commercial properties with 2,784 residential units in New York City with 3,774,283 square feet and a city-determined market value of $888.5 million. (Market value is typically about 50% of actual value.) The portfolio has $1.2 billion in debt, with top three lenders as Invesco Real Estate, Invesco, and Santander Bank respectively. Within the portfolio, the bulk, or 41 percent of the 3,774,283 square feet of built space are elevator properties, with industrial properties next occupying 26 percent of the space. The bulk, or 45 percent of the built space, is in Brooklyn, with Queens next at 33 percent of the space.

Direct link to Acris document. link