Bushwick Loft Building Sells 24% Below Its 2016 Price

The Bogart Lofts at 315 Seigel Street in Bushwick sold for $30,000,000 in a deed dated August 11 and recorded August 27. Commercial Observer reports the seller as T30 Capital, formerly Sugar Hill Capital Partners, which paid a reported $39.5 million for the building in 2016. If that figure holds, the building has resold about 24% below its last trade after ten years of ownership.

Why it matters

Brooklyn loft product is the asset class most often cited as having only gone up, and this is a marquee example of it going down: 51 units directly above the L train’s Morgan Avenue stop, in the neighborhood that defined the borough’s industrial-to-residential story. For anyone underwriting Bushwick multifamily, $588,235 a door and $563.91 per square foot is a current, recorded comparable rather than a broker’s view, and it is set below a 2016 basis.

The second thing to take from it is where the debt had been sitting. The mortgage on this lot passed through the Signature Bank failure, and a building whose loan spent two years inside a liquidation portfolio is not a normal seller. That context does more to explain a 24% markdown than any read on Bushwick rents.

The numbers

City land records put the 1931 building at 51 residential units across 53,200 sq ft on a 20,240 sq ft lot, zoned M1-2 with a permitted residential floor area ratio of 0.00 and a built ratio of 2.63. The residential use was converted from industrial in 2005 and does not derive from the current zoning. We could not confirm from available records whether the building carries Loft Law coverage or another legal status, and that question is material to what a buyer actually acquired.

The debt chain is recorded in full. Two assignments dated in 2023 and recorded September 3, 2024 moved the mortgage from the Federal Deposit Insurance Corporation as receiver for Signature Bank to Signature Bridge Bank, and then from the FDIC as receiver for Signature Bridge Bank to SIG CRE 2023 Venture LLC, the vehicle that took Signature’s commercial real estate book out of receivership.

The deed runs from 59 Bogart Owner LLC, Trisun Bogart LLC and 420 St. Nicholas Residences LLC, sharing an address at 60 East 42nd Street, to an entity called 59 Bogart LLC whose only address in the record is a Brooklyn post office box. Commercial Observer identifies the buyer as Jo-Ann Obergfell.

What’s next

Watch for a new mortgage against the lot, which would show what a lender will underwrite this rent roll at, and for the certificate of occupancy question to surface in any refinancing. For the rest of today’s New York records file, see $136M of new debt on 14.7 acres of Bronx waterfront and the New York market.