By Sarah Trefethen
Investors with a taste for rough diamonds and city incentive programs might want to look at a new listing from Marcus and Millichap’s Brooklyn office: 100,000 s/f of industrially zoned land in Sunset Park, right in between the water and the Gowanus Expressway, neighboring successful new initiatives at Industry City and the Brooklyn Army Terminal.
Right now, the property’s 123,785 s/f of rentable warehouse and office space is home to a mix of traditional, “brick-and-mortar industrial” tenants, according to Jakub Nowak, who is exclusively market the property with Hemal Patel.
The second floor tenants are paying around $7 psf, he said, but as they move out between now and 2017, the space could be remarketed to artists, a class of tenants who are paying $17-$20 in Industry City.
“It’s more of a retail approach,” Nowak said, noting that a larger number of smaller tenants paying more rent would also require more management.
Within five years, the building will be 90 percent vacant, Nowak said, and ultimately the zoning allows for up to 200,000 buildable square feet.
“I see a potential for someone to be able to update the facility and ride the wave of the rent increases in the area,” Nowak said.
The property falls within Brooklyn’s Sunset Park Industrial Waterfront District, the Southwest Brooklyn Industrial Business Zone, and the EDC’s Sustainable Urban Industrial District, part of the city’s Sunset Park Vision Plan aimed at promoting investment and development in the Sunset Park waterfront industrial area.
Asking price on the property is $16.8 million, which comes out to $83.20 per buildable square foot, or $135.72 psf for the current structure, Nowak calculated.