Townhouse Rental II pays $5.6M for 3-unit walkup in Bushwick

Townhouse Rental II, L.L.C., one of the most active walkup buyers that has an affiliation with the Carlyle Group, paid $5.6 million to Frimy Goldberger through the entity 409 Stockholm, LLC for three-unit walkup (C0) at 409 Stockholm Street in Bushwick, Brooklyn.
The deal closed on June 15, 2022 and was recorded on June 29, 2022. The property has 2,720 square feet of built space and 3,350 square feet of additional air rights for a total buildable of 6,075 square feet according to PincusCo analysis of city data. The sale price per built square foot is $2,068 and the price per buildable square foot is $925 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 November 23, 2016, for $1.3 million. The signatory for Frimy Goldberger was Frimy Goldberger. The signatory for Townhouse Rental II, L.L.C. was Carter Martin.

Prior sales and revenue

Prior to this transaction, Pincusco has records that the buyer Townhouse Rental II, L.L.C. purchased 47 properties in 47 transactions for a total of $185.1 million and has no record it sold any properties over the past 24 months.
The seller Frimy Goldberger had not purchased any other properties and had not sold any properties over the same time period. The former owner according to the Department of Housing Preservation and Development is Asher Paskes, head officer. The business entity is 409 Stockholm, Llc.

The property

The 409 Stockholm Street parcel has frontage of 25 feet and is 100 feet deep with a total lot size of 2,500 square feet. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $1.2 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has received $5,000 in ECB penalties and $5,160 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on May 4, 2022. There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The neighborhood

In Bushwick, the bulk, or 32 percent of the 51.4 million square feet of commercial built space are 1-4 family buildings, with residential walkup buildings next occupying 29 percent of the space. In sales, Bushwick has 3.3 times the average sales volume among other neighborhoods with $910.2 million in sales volume in the last two years and is the 3rd highest in Brooklyn. For development, Bushwick has 1.2 times the average amount of major developments relative to other neighborhoods and is the 18th highest in Brooklyn. It had 1.1 million square feet of commercial and multi-family construction under development in the last two years, which represents 2 percent of the neighborhood’s built space. There were six pre-foreclosure suit filed among other 1-4 family buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of two of the six commercial properties representing 10,557 square feet of the 29,607 square feet. The two identified owners are Ryszard Tylawski and Charles Ferrone. There is one active new building construction project totaling 5,440 square feet. It is an eight-unit, 5,440-square-foot R-2 building developed by Alex Halimi with plans filed September 28, 2017 and it has not been permitted yet.

The majority, or 68 percent of the 93,063 square feet of built space are 1-4 family buildings, with mixed-use buildings next occupying 26 percent of the space.

The seller

The PincusCo database currently indicates that Frimy Goldberger owned at least six commercial properties with 31,636 square feet and a city-determined market value of $5.1 million. (Market value is typically about 50% of actual value.) The portfolio has $27.1 million in debt, borrowed from Berkadia Commercial Mortgage and Valley National Bank. Within the portfolio, the bulk, or 47 percent of the 31,636 square feet of built space are walkup properties, with mixed-use properties next occupying 34 percent of the space. The bulk, or 91 percent of the built space, is in Brooklyn, with Queens next at 9 percent of the space.

Surrounding

PincusCo has not identified any commercial real estate items of interest within a 400-foot radius of 409 Stockholm Street that occurred over the past 24 months.

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