Greenbrook recaps two Park Slope rentals with Carlyle at $17.8M, bought for $8.4M

In another in a series of dozens of similar transactions, Greenbrook Partners recapitalized two rental properties it had previously acquired with other investors, and sold them to Carlyle Group. As in the previous sales, Greenbrook Partners remains in the deal.

In the latest two transactions, Carlyle Group with Greenbrook Partners recapitalized adjacent rental buildings in Park Slope, Brooklyn, 784 and 786 President Street for, $17.8 million. Greenbrook Partners bought the two former convent buildings from the Sisters of St. Joseph in 2021 for $8.4 million.

In the first of the new transactions, Carlyle Group and Greenbrook Partners through the entity Townhouse Rental VIII, L.L.C. paid $8.9 million to Greenbrook Partners through the entity 784-6 President St, LLC for the six-unit rental at 786 President Street in Park Slope, Brooklyn.
The deal closed on May 2, 2024 and was recorded on May 8, 2024. The property has 7,000 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $1,272 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 Greenbrook Partners was Gregory Fournier. The signatory for Carlyle Group and Greenbrook Partners was Carter Martin. The contract date was August 10, 2023.

In the second of the new transactions, Carlyle Group and Greenbrook Partners through the entity Townhouse Rental VII, L.L.C. paid $8.9 million to Greenbrook Partners through the entity 784-6 President St, LLC for the six-unit rental at 784 President Street in Park Slope, Brooklyn. The deal closed on May 2, 2024 and was recorded on May 8, 2024. The property has 7,000 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $1,272 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 seller bought the property on February 19, 2021, for $8.4 million. The signatory for Greenbrook Partners was Gregory Fournier. The signatory for Carlyle Group and Greenbrook Partners was Carter Martin. The contract date was August 10, 2023. This is a recapitalization in which Greenbrook is remaning in the deal but prior equity is selling. Greenbrook Partners bought the parcel in February 2021 for $8.4 million, then divided it into two tax lots which it sold for a combined $17.8 million to Carlye Group.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Carlyle Group purchased 137 properties in 135 transactions for a total of $922.4 million and sold one property in one transactions for a total of $4 million over the past 24 months.

The property

The specialty building in Park Slope has 7,000 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 34 feet and is 100 feet deep with a total lot size of 3,480 square feet. The zoning is R6B which allows for up to 2 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $749,000.

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 and $300 in OATH penalties in the last year.

Development

On the lot, there are two active new building construction projects and major alteration projects with initial costs more than $5 million, totaling 28,234 square feet. The largest is a major alteration project for a 12-unit, 14,117 square-foot R-2 building submitted by Greg Fournier with plans filed June 11, 2021 and permitted June 7, 2023. The second largest is a major alteration project for a 12-unit, 14,117 square-foot R-2 building submitted by Greg Fournier with plans filed June 11, 2021 and permitted October 11, 2023.

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 3 times the average sales volume among other neighborhoods with $834.7 million in sales volume in the last two years and is the 4th highest in Brooklyn. For development, Park Slope has had very little major development activity relative to other neighborhoods.It had 610,383 square feet of commercial and multi-family construction under development in the last two years, which represents 6 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of five of the 14 commercial properties representing 39,116 square feet of the 107,592 square feet. The largest owner is Stan Levine, followed by Edward Vays and then Carlyle Group.
There are no active new building construction projects on this tax block.

The majority, or 72 percent of the 107,592 square feet of built space are walkup buildings, with specialty buildings next occupying 22 percent of the space.

The buyer

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 $1.3 billion in debt, with top three lenders as Invesco Real Estate, Invesco, and Prudential Financial 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.
The PincusCo database currently indicates that Greenbrook Partners owned at least 117 commercial properties with 792 residential units in New York City with 735,260 square feet and a city-determined market value of $220.1 million. (Market value is typically about 50% of actual value.) The portfolio has $277.3 million in debt, with top three lenders as Invesco Real Estate, Rialto Capital Management, and MP Real Estate Capital respectively. Within the portfolio, the bulk, or 61 percent of the 735,260 square feet of built space are walkup properties, with mixed-use properties next occupying 10 percent of the space. They are all located in Brooklyn.

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