Sunset Park Development Sells for Nearly $20M
Marcus & Millichap has arranged the sale of a 123,785-square-foot, two-story industrial building at 150 52nd Street in Sunset Park, Brooklyn for $19.5 million.
The lot currently holds an industrial building with seven commercial tenants and a 30,631-square-foot open parking lot, but it carries with it 201,930 square feet of total buildable air rights. The demand for development opportunities in the area led to a sale price that came in $2.7 million over the asking price, brokers said.
“The high demand for commercial space in Brooklyn is keeping rents on an upward trajectory and investors keen on capitalizing on this trend are driving prices and pushing past the usual geographical boundaries,” said Jakub Nowak of Marcus & Millichap, who represented the seller, a private equity partnership, with Hemal Patel, in a statement.
“[It] gives the new owner the opportunity to add significant value over time by increasing the rent roll and capitalizing on the strong and steady growth in local commercial rents.”
The property lies within the Southwest Brooklyn Industrial Business Zone and the New York City Economic Development Corporation‘s Sustainable Urban Industrial District, which is part of the Sunset Park Vision Plan, aimed at promoting investment and development in the Sunset Park waterfront. It is one block from the upcoming Bush Terminal Pier green space and sports field development.