The Real Deal New York

Massive Sunset Park site in Opportunity Zone just hit the market for $150M

The developers struggled with rezoning and community board pushback
February 21, 2019 08:30AM

A rendering of the development at 6208 Eighth Avenue in Brooklyn (Credit: Raymond Chan Architects via YIMBY)

A group of Flushing-based developers who have struggled with the rezoning process in Sunset Park have put their large development site on the market.

The developers had planned a 1.3-million-square-foot mixed-use project in Sunset Park. The site at 6208 Eighth Avenue is now on the market for $150 million, Commercial Observer reported.

Cushman & Wakefield’s Stephen Preuss has the listing.

The move by the ownership group, 8208 Realty LLC, comes after years of pushback from the local community board and struggling to get through the rezoning process. The developers sought to build three towers at the site — a 12-story, 250-unit residential building with 50 affordable apartments; a 12-story office building; and an 11-story, 250-room hotel on top of a two-story retail space. They wanted a rezoning order to build slightly more parking spaces than would otherwise be allowed. The developers also wanted a variance to allow them to deck over the adjacent Long Island Railroad and N train tracks.

The Brooklyn Borough President’s office is currently considering the application, the report said. A future owner could develop the site without special city approvals.

Preuss said the site is in an Opportunity Zone and will be marketed to Opportunity Zone funds and major developers in the tri-state area.

“For larger real estate funds and larger owners, it’s much harder to find development sites of size than to find 10,000- or 20,000-square-foot sites,” he said. “There’s an appetite for larger scale development sites in the boroughs.”

The 158,000-square-foot lot was originally rezoned in 2007 to allow a dense mixed-use residential and commercial development with a Home Depot. Developer Andrew Kohen abandoned his plans in 2008 due to recession — and sold the site to the current owners for $51.5 million in 2014. [CO] — Meenal Vamburkar