$6M Sunset Park industrial building in second bankruptcy in two years

Janet Rush, the owner of the 14,698-square-foot industrial building valued at $6 million at 139 58th Street in Sunset Park, Brooklyn, filed bankruptcy for the second time in two years, this time two days before a scheduled foreclosure auction in Brooklyn.
Bankruptcy LINK
The industrial building in Sunset Park has 14,698 square feet of built space and 7,741 square feet of additional air rights for a total buildable of 22,438 square feet according to a PincusCo analysis of city data. The parcel has frontage of 58 feet and is 200 feet deep with a total lot size of 11,219 square feet. The lot is irregular. The zoning is M3-1 which allows for up to 2 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $624,000.

This is the second bankruptcy filing for the plaintiff at this property in two years. Rush placed the property in bankruptcy in 2021 (1-21-42840-jmm) which terminated in June 2022.

In the new filing, the petitioner claims the property is worth $6 million based on a broker’s opinion of value. The building has a senior loan with an original principal from 2017 of $3.35 million.

The total secured debt is $4.9 million owned by Lane Capital Partners through LCP NPL XI, 2019 LLC. The lender is pursuing foreclosure through 514848/2019 Brooklyn.

There are also two other cases pending in state supreme court, a personal injury (524010/2017 Brooklyn) case and a product liability case (0023463/2017E Bronx).

According to the foreclosure sale order, from April 2023, the property is set to be sold at the Brooklyn Court House June 22. “Pursuant to the Judgment of Foreclosure and Sale (“Judgment”) dated January 12, 2023 and entered on January 27, 2023 in the above entitled action, I, the undersigned Court Appointed Referee will sell at public auction at the Kings County Supreme Court, located at 360 Adams Street, Room 224, Brooklyn, New York 11201 on June 22, 2023 at 2:30 P.M… Approximate amount of lien $4,701,164.25, plus interest and costs.”

Direct link to the property’s ACRIS page and link to DOB NOW portal.