Carlyle Group pockets $40M LIC trade school building
Demand for building trades is up despite faltering economy
The Carlyle Group has picked up a Long Island City trade school building for $40 million.
The private-equity firm purchased the 74,105-square-foot building at 24-02 Queens Plaza South from Atlas Capital, according to property records. The property has been home to Apex Technical School since 2012, the same year Atlas bought the building for $13.5 million.
Carlyle and Atlas did not immediately return requests for comment. But the purchase may be a bet on the future of the trades at a time when many other tenants are struggling to cover rent.
The unemployment rate for construction workers has fallen over the last decade, according to a July report from the National Association of Home Builders.
Despite an overall economy faltering from effects of the pandemic, demand for housing has outpaced supply. Prices have risen as a result.
The median sale price for a new home reached $330,600 in July, 7.2 percent higher than a year earlier. Lumber prices have also risen because of a supply crunch, pushing the cost to build a new home up $16,000 since April.
In a public Facebook group for alumni, Apex lists a steady stream of job offerings, mainly in the automotive field. Fearful of public transportation, many New Yorkers have become first-time car owners.
The Wall Street Journal reported that walk-in leads to New York City-area auto dealers were up 38 percent in June, year-over-year, compared with 6 percent nationwide. And the city registered 2,000 more cars in June, and 9,000 more in July, compared to the same months in 2019, according to The City.