Carlyle Group scores $32M construction loan for Crown Heights storage facility

Investment firm renewed building permit submitted by Criterion Group, the lot’s previous owner

New York /
Sep.September 16, 2021 04:02 PM
1223 East New York Avenue with Carlyle Group's Jason Hart (Google Maps, Carlyle Group)

1223 East New York Avenue with Carlyle Group’s Jason Hart (Google Maps, Carlyle Group)

Here come the cubes.

The Carlyle Group on Wednesday scored $31.8 million in construction loans from Santander Bank to build a self-storage facility in Crown Heights. The project will replace a Western Beef meat market that used to stand at 1223 East New York Avenue and has since been demolished.

In Nov. 2020, a Carlyle subsidiary purchased the lot for $13 million from Shibber Khan’s Criterion Group, public records show. Just five months before the sale, Criterion obtained city approval for a three-story self-storage building on the 43,000-square-foot lot. Carlyle has renewed the permits and with the new funding, arranged by Eastdil Secured, appears poised to finally execute on them.

Just one roadblock remains: a stubborn partial stop-work order. On July 13, the city halted the project after a neighbor complained the construction was causing cracks in his basement and shaking his house. The order remains unresolved, although the city has lifted some restrictions for approved work.

Carlyle’s private equity arm holds at least $26 billion in real estate assets, according to its second-quarter shareholder report. The firm generally steers clear of office, hotel and retail spaces, with the vast majority of its real estate holdings in specialized buildings like self-storage facilities, life-sciences centers and single-family rentals.

All told, real estate accounts for just 17 percent of the firm’s $150 billion in private equity assets under management.

The Carlyle Group did not immediately respond to a request for comment.





    Related Articles

    arrow_forward_ios
    Donal O’Sullivan (Image via Navillus)
    Ex-Navillus CEO found guilty of cheating unions
    Ex-Navillus CEO found guilty of cheating unions
    George Gleason (Bank OZK)
    Bank OZK loan originations reach highest level since 2017
    Bank OZK loan originations reach highest level since 2017
    MTA plans mixed-use redevelopment for Greenpoint waterfront
    MTA plans mixed-use redevelopment for Greenpoint waterfront
    MTA plans mixed-use redevelopment for Greenpoint waterfront
    Scale’s $48M loan kicks off first phase of New Rochelle project
    Scale’s $48M loan kicks off first phase of New Rochelle project
    Scale’s $48M loan kicks off first phase of New Rochelle project
    374 Fourth Ave in Gowanus, Brooklyn (Google Maps, iStock)
    Quinlan plans 197-unit project for Gowanus
    Quinlan plans 197-unit project for Gowanus
    Tishman Speyer’s Rob Speyer and The Jacx (Getty, The Jacx)
    Tishman’s $425M LIC refi leads busy month for outer-borough loans
    Tishman’s $425M LIC refi leads busy month for outer-borough loans
    Brooklyn contracts jump in mid-October
    Brooklyn luxury home contracts jump in mid-October
    Brooklyn luxury home contracts jump in mid-October
    Judge trashes 421a rent overcharge suit against Muss
    Judge trashes 421a rent overcharge suit against Muss
    Judge trashes 421a rent overcharge suit against Muss
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...