Probably named after Augustus Zerega diZerega, a merchant and shipowner.
Forgotten New York says the street was likely named for diZerega, a merchant, shipowner and slaveowner, Venezuelan by birth and born in 1803. He bought a 114-acre estate at Ferry Point, now Ferry Point Park, where his mansion, Island Hall, later served a Catholic order until the 1930s. Before it took his name, the street was called Avenue A.