Sheepshead Bay 1.08-acre commercial lot sells for $13M

A Sheepshead Bay commercial lot at 2558 East 18th Street sold for $13 million, with 2558 East 18th Street Realty, LLC conveying to 1717 Ave Z LLC. The deed is dated September 29 and was recorded October 6, according to the City Register record.

Why it matters

The lot is large for the neighborhood: 47,180 sq ft, or about 1.08 acres, at Brooklyn block 7438, lot 24. City tax-lot data lists a one-story, 32,000 sq ft building from 1958, class K4, with four commercial units and no residential units. The zoning is C8-1, a heavy commercial district where residential use is not allowed as of right, so a housing play would need a rezoning or a different use.

For a developer or broker, the question is what the buyer intends. The record does not say, and the buyer’s name points to an Avenue Z address that we did not tie to this lot. We found no new building, demolition or major alteration filing on it.

The numbers

At $13 million the deed prices out at about $276 per sq ft of land and about $406 per sq ft of the existing building. The seller entity’s recorded history on the lot shows a $3.7 million Investors Bank mortgage dated June 2013, followed by a 2018 Spencer Savings Bank agreement recorded at $3.5 million. No earlier deed appears in the lot’s electronic record, so we cannot state what the seller paid or its gain.

The only DOB NOW filings are two 2020 alterations, each with a $3,600 cost and zero dwelling units, listing Bay Fruit Corp. as owner per the DOB NOW dataset. That suggests a long-held operating site rather than a lot being prepared for development.

What’s next

Watch DOB NOW for a new filing on block 7438, lot 24 in the coming weeks. A demolition or new-building job would show whether this is a conversion of the existing space or a ground-up play, and a zoning application would signal a residential intent. A mortgage recorded against the buyer would show the lender and leverage. See more deals in New York.