Carlyle Group Expands New York Real Estate Holdings with Major Brooklyn Acquisition

Global investment firm The Carlyle Group has significantly strengthened its position in the New York City property market. The private equity giant has completed the acquisition of a multifamily residential building in Brooklyn for a purchase price of $105 million. This transaction represents the company's first major real estate deal of the 2026 fiscal year and coincides with the start of a new leadership era.

This acquisition marks the first sizable transaction under a freshly implemented executive structure. As of January 1, 2026, the firm has been steered by a new trio of co-presidents: John C. Redett, Mark Jenkins, and Jeff Nedelman. This planned leadership realignment is designed to enhance investment performance and operational agility.

The deal occurs as the private equity sector shows signs of a gradual recovery following a period of elevated interest rates. Industry metrics suggest that the previous hesitancy around capital deployment is beginning to subside. Carlyle appears to be capitalizing on this shift, particularly in supply-constrained markets such as New York's residential real estate sector.

Details of the Brooklyn Property

The company purchased the newly constructed, 13-story building located in the Gowanus neighborhood. The property contains 132 residential units. The transaction was executed in partnership with operating partner Z+G Property Group and was financed through an $80 million loan provided by Invesco Real Estate. Based on the total price, the cost per apartment unit equates to approximately $795,000.

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The building's composition includes 99 free-market apartments and 33 income-restricted units, alongside roughly 12,000 square feet of retail space.

A Continued Strategic Focus

This purchase continues Carlyle's deliberate "small-building" investment strategy within the New York boroughs of Brooklyn and Queens. Over the past 18 months, this focused approach has enabled the firm to assemble a local residential portfolio valued at over $500 million.

The market has responded positively to this continued capital allocation. On Wednesday, Carlyle's share price advanced by 2.5% to $65.65. In a related move, institutional investor Galvin Gaustad & Stein LLC has been increasing its stake, boosting its holdings by 54.4% to approximately 233,054 shares.

Investor Attention Turns to Earnings

Looking ahead, investor focus is shifting toward the upcoming release of Carlyle's fourth-quarter 2025 results, scheduled for February 9, 2026. Market analysts are forecasting earnings per share of $1.04, which would indicate a notable increase from the prior year's result of $0.92 per share.