Atlantic Avenue and Sixth Avenue, rendering of planned tallest building in Pacific Park
NEW YORK CITY—Developers Greenland USA and Forest City Realty Trust have restructured Greenland Forest City Partners, increasing Greenland's ownership interest in the Pacific Park project from 70% to 95%. Forest City's interest is now at 5%. Established in 2013, Greenland USA is a subsidiary of Greenland Holding Group, a company that's publicly traded on the Shanghai Stock Exchange. TF Cornerstone and the Brodsky Organization recently joined Greenland as partners. The New York developers are expected to accelerate progress on the Brooklyn development that was originally called Atlantic Yards but renamed Pacific Park.
TF Cornerstone is purchasing 615 Dean St. and 595 Dean St. and the Brodsky Organization is purchasing 664 Pacific St. The deals are expected to close by the end of 2018. The developers will construct three mixed-income, rental residential buildings, open space and a public school.
Greenland has hired Perkins Eastman to design a building located at Atlantic Avenue and 6th Avenue, besides Barclays Center. Construction is scheduled to begin in spring 2019. Rising over 500 feet, it will be the tallest building in Pacific Park.
In addition, Greenland has begun the design work for the above-ground platform that will allow development of six additional parcels. A spokesperson for the developers declined to disclose estimated construction costs for the four buildings and the platform. However, the overall project's budget is $4.9 billion, according to the June 2014 amendment to the 2009 general project plan.
The vast project has taken years to get to where it's at now. In 2003, Forest City Ratner first announced plans for building the Atlantic Yards for $2.5 billion. It would feature affordable housing, retail and an arena. Mired in disputes, lawsuits, cost-overruns, and an economic slowdown, the development had stalled and at times lost its wind, with Forest City Ratner's founder Bruce Ratner disentangling his involvement.
However, Scott Solish, EVP of development at Greenland is optimistic about its new partners.
“Greenland Forest City Partners is now in a position to accelerate development at Pacific Park, where we are fully committed to delivering industry leading, thoughtfully-designed residential buildings and community space to Brooklyn,” he says.
The new partners point to their relevant track records. TF Cornerstone recently opened 33 Bond, a 714-unit rental development close to Pacific Park, featuring affordable housing and ground-floor retail. The Brodsky Organization has local experience in improving public spaces and building schools. It also opened City Tower at City Point in Downtown Brooklyn in 2015, and acquired the rental tower 7 DeKalb Ave in 2017.
An Empire State Development Corporation spokesperson explains to GlobeSt.com that the State of New York currently owns the Pacific Park property, which is governed by ESDC. He says once the developers complete construction and a certificate of occupancy is issued, they will obtain deeds to the buildings.
The PBS station THIRTEEN documents the project's timeline, showing a story of aspirations, ambitions, achievements and also harsh controversies. However, ESDC says Pacific Park will ultimately provide the following public benefits:
The 22-acre, $4.9 billion project includes an 18,000-seat arena; development of an improved LIRR train yard and subway facility upgrades; 16 buildings for residential and commercial uses, with up to 6,430 apartments, of which 2,250 will be affordable to low, moderate and middle-income households; and the creation of eight acres of publicly accessible open space
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Betsy Kim
Betsy Kim was the bureau chief, East Coast, and New York City reporter for Real Estate Forum and GlobeSt.com. As a lawyer and journalist, Betsy has worked as the director of editorial and content for LexisNexis Lawyers.com, a TV/multi-media journalist for NBC and CBS affiliated TV stations in the Midwest, and an associate producer at Court TV.
