Brooklyn Loft Building Sold At A $9.5M Loss

EAST WILLIAMSBURG/BUSHWICK— A longtime East Williamsburg property sold for far less than its previous sale price.

The 51-unit loft building at 59 Bogart St. in East Williamsburg, along the northern tip of Bushwick, has sold for $30 million, marking a $9.5 million drop from the price paid a decade ago.

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The sale price represents roughly a 24 percent decline from Sugar Hill's 2016 purchase price, before accounting for any capital improvements, financing costs, operating income or other expenses associated with ownership.

Harlem-based developer Sugar Hill Capital Partners bought the 53,200-square-foot property for $39.5 million in August 2016, according to city records.

CBRE, which brokered the latest transaction, announced the sale but did not provide a reason for the lower price.

The buyer, identified in property records as 59 Bogart LLC, lists a post office box in Northwest Brooklyn as its address.

The building sits between Seigel and McKibbin streets and also carries the address 315 Seigel St.

It began as an industrial loft building before its former owner, SYC Realty LLC, converted it into 51 residential units in 2005, according to CBRE and city records.

The building now offers studios and one-, two- and three-bedroom loft apartments. StreetEasy lists recent rents ranging from $5,000 to $5,700 a month.

The property is fully occupied, according to CBRE.

The building sits directly above the Morgan Avenue subway station, giving residents immediate access to the L train.

Its location also places it in East Williamsburg, a neighborhood known for its converted industrial buildings, restaurants, bars, art spaces and residential development.

For a buyer, the combination of an occupied building, loft-style apartments and direct subway access offers an existing income stream rather than a vacant property requiring a major residential conversion.

The transaction does not, by itself, indicate that rents will rise or fall.

The building remains fully occupied, and the available information does not identify any planned changes to the apartments or management. The new owner could ultimately make decisions about rents, renovations or operations, but the sale announcement does not disclose such plans.

For current and prospective tenants, the immediate takeaway is that ownership has changed at a fully occupied loft building with rents reaching the mid-$5,000s.