Carlyle Strikes in Brooklyn Again With $105M Purchase

The Carlyle Group and a familiar partner are back on the Brooklyn multifamily market, this time snapping up a 132-unit property for $105 million.

The private equity firm and Jay Greenberg’s Z+G Property Group acquired the 13-story apartment building at 130 Second Street in Gowanus, Crain’s reported. The seller was a joint venture of Joyland Management, Meral Property Group and the Loketch Group.

The deal breaks down to $795,000 per unit. A JLL team including Ethan Stanton, Jeffrey Julien and Rob Hinckley brokered the sale, which was first reported by The Promote.

Invesco Real Estate provided an $80 million loan as part of the transaction, which was brokered by JLL’s Geoff Goldstein and Steven Klein.

The property was completed last year by Prospect Developers, when Joyland began operating the building. There are 99 market-rate units and 33 affordable units, none of which are publicly available as of press time.

The building also has a 12,000-square-foot ground-floor retail space, which is unoccupied, and residential amenities include a rooftop terrace and a fitness center.

Carlyle made waves a few years back when it was revealed to be purchasing small, mostly 10-unit or fewer, Brooklyn apartment buildings one at a time, amassing a $500 million portfolio. 

But it’s no stranger to making bigger deals with Z+G. In 2023, they bought a 46-unit multifamily building at 180 Bainbridge Street in Bed-Stuy for $22.4 million. More recently, the two partnered on the $32.1 million acquisition of 438 4th Avenue in Gowanus in the spring.

Additionally, Carlyle and Z+G have made a deal with the same sellers before. Two and a half years ago, a joint venture between the pair paid $97.5 million to buy a newly constructed, 123-unit rental building at 8 Marcy Avenue in Williamsburg. Prospect was listed as the seller and Invesco also provided an acquisition loan there.

— Holden Walter-Warner

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