Fetner, Carlyle sign $76.3M construction loan with Brookfield for 363-unit project in LIC

Fetner Properties and the Carlyle Group through the entity Italic Realty L.L.C. as borrower signed a new construction loan with lender Brookfield Asset Management through the entity BREF VI Holdings LLC valued at $76.3 million for the 363-unit development at 26-32 Jackson Avenue in Long Island City, Queens.
The deal closed on April 27, 2023 and was recorded on May 9, 2023.

Carlyle bought a controlling interest in the property for $51.2 million from Fetner and Lions Group, also on April 27, 2023. The signatory for Fetner Properties and Carlyle Group was Harold Fetner. The signatory for Brookfield Asset Management was Laura Stepp.

Development

On the lot, there is one active new building construction project for a 363-unit, 364,819 square-foot 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.

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, 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 borrower

The PincusCo database currently indicates that Carlyle Group owned at least 208 commercial properties with 2,275 residential units in New York City with 2,702,149 square feet and a city-determined market value of $687.2 million. (Market value is typically about 50% of actual value.) The portfolio has $1.1 billion in debt, with top three lenders as Invesco Real Estate, Invesco, and Santander Bank respectively. Within the portfolio, the bulk, or 54 percent of the 2,702,149 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.
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 and a city-determined market value of $130.9 million. (Market value is typically about 50% of actual value.) 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.

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