It's been a couple months since word got around that the owners of Loki Lounge, the bar that's held down the corner of 5th Avenue and 2nd Street since 1999, were planning on seriously downsizing due to a rent increase. When I spoke with a bartender a couple weeks ago he told me that the plan was to sell off the portion of the space that's currently the bar area but hold onto the back "lounge" area and convert that remaining portion into a new bar, with an entrance on 2nd Street. That all appears to be finally underway, as Park Slope Stoop noticed that the space is currently up for rent on Craigslist.
A rep from the bar confirmed to me that the initial plan to split in half is still in place, and that Benchmark, the adjacent steakhouse with the same owners, will be remaining open as well. The space is on the market for $11,500/ month (the equivalent of 2,300 $5 well drinks), and can be turned over as-is with no key money.