The Carlyle Group’s quest to quietly amass a big multifamily portfolio in Brooklyn got here to gentle 4 years in the past. Since then, the personal fairness agency has continued rising its holdings within the borough.
Up to now 12 months and alter, Carlyle acquired roughly two dozen small multifamily buildings in Brooklyn, Crain’s reported. The purchases got here at a mixed worth of roughly $90 million, boosting the corporate’s complete portfolio in New York to greater than 260 multifamily properties at a price above $800 million.
Carlyle’s technique usually includes concentrating on prewar walkups with minimal unit counts, permitting the corporate to duck choose property tax will increase and function exterior of the rent-stabilization stratosphere. Neighborhoods concerned in Carlyle’s dealings embrace Bushwick, Prospect Heights and Greenpoint.
In a current instance, Carlyle purchased 30 Lefferts Place in Clinton Hill from Greenbrook Companions for $4.3 million in an all-cash deal. That’s roughly double what Greenbrook paid for the four-unit constructing in 2023, which it renovated within the interim.
Carlyle didn’t return a request for remark from the publication.
Starting in the summertime of 2021, Carlyle spent a year stitching collectively a half-billion-dollar portfolio of small residence buildings in Brooklyn. In that point, the personal fairness big purchased greater than 130 of them in neighborhoods equivalent to Bushwick, Bedford-Stuyvesant, Park Slope and Cobble Hill, in line with sources and an evaluation of property information.
Carlyle was usually shopping for the buildings one by one, writing the sort of $2 million or $3 million checks frequent to small traders who dominate the house. Folks accustomed to the agency’s technique on the time mentioned it focused a particular sort of constructing that falls into the town’s 2A/2B tax designation, which restricted will increase on actual property taxes to not more than 8 p.c a 12 months.
In the beginning of this 12 months, Carlyle and Z+G Property Group acquired a 132-unit, 13-story residence constructing at 130 Second Road in Gowanus for $105 million. The property, which was accomplished final 12 months, consists of 99 market-rate and 33 inexpensive models and likewise incorporates a 12,000-square-foot ground-floor retail house.
Carlyle manages $485 billion in property, in line with its second-quarter earnings report. The corporate closed its most up-to-date actual property fund final August, elevating $9 billion for the automobile.
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