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 non-public fairness agency has continued rising its holdings within the borough.
Prior to now yr 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 entails focusing 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 latest 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 condominium buildings in Brooklyn. In that point, the non-public fairness large purchased greater than 130 of them in neighborhoods similar to Bushwick, Bedford-Stuyvesant, Park Slope and Cobble Hill, in response to sources and an evaluation of property information.
Carlyle was typically shopping for the buildings one by one, writing the sort of $2 million or $3 million checks frequent to small buyers who dominate the area. Folks aware of the agency’s technique on the time mentioned it focused a particular sort of constructing that falls into town’s 2A/2B tax designation, which restricted will increase on actual property taxes to not more than 8 p.c a yr.
Firstly of this yr, Carlyle and Z+G Property Group acquired a 132-unit, 13-story condominium constructing at 130 Second Avenue in Gowanus for $105 million. The property, which was accomplished final yr, consists of 99 market-rate and 33 inexpensive items and in addition incorporates a 12,000-square-foot ground-floor retail area.
Carlyle manages $485 billion in property, in response to its second-quarter earnings report. The corporate closed its most up-to-date actual property fund final August, elevating $9 billion for the car.
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