Daniel Lage pays $5M for vacant lot in Sunset Park

Daniel Lage through the entity Prospes Management Corp. paid $5 million for the vacant site (V1) at 5200 1st Avenue in Sunset Park, Brooklyn. The property was involved in a state tax foreclosure and a Florida bankruptcy case. The sale was through the state tax foreclosure. The former owner was John A. Luhrs.
The deal closed on May 31, 2024 and was recorded on June 7, 2024. The property has zero square feet of built space and 48,078 square feet of additional air rights for a total buildable of 48,078 square feet according to a PincusCo analysis of city data. The sale price per buildable square foot is $103 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The signatory for the court was the referr Mark A. Longo. The signatory for Daniel Lage was Daniel Lage. The contract date was March 28, 2024. Mark A. Longo is the referee. This property was subject to a bankruptcy in the Middle District of Florida, 3:23-bk-2377-JAB. Litigation and bankruptcy narrative is available here. John A. Luhrs is the president of the former owner/debtor 5200 Enterprises Limited, according to court records, from case 516288/2020.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Daniel Lage had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller John A. Luhrs had not purchased any other properties and had not sold any properties over the same time period.

The property

The parcel has frontage of 100 feet and is 240 feet deep with a total lot size of 24,039 square feet. 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 $819,000.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has not received any significant violations in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The neighborhood

In Sunset Park, The bulk, or 30 percent of the 34 million square feet of commercial built space are industrial buildings, with specialty buildings next occupying 24 percent of the space. In sales, Sunset Park has 1.5 times the average sales volume among other neighborhoods with $421 million in sales volume in the last two years and is the 17th highest in Brooklyn. For development, Sunset Park has had very little major development activity relative to other neighborhoods.It had 75,360 square feet of commercial and multi-family construction under development in the last two years, which represents 0.22 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other development buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of four of the 13 commercial properties representing 489,389 square feet of the 589,383 square feet. The largest owner is Nightingale Properties, followed by City Of New York and then Capstone Equities.
There are no active new building construction projects on this tax block.

The majority, or 65 percent of the 589,383 square feet of built space are office buildings, with specialty buildings next occupying 21 percent of the space.

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