Some of the property in the picture above will be knocked down for the Atlantic Yards project.Actually, none of the property pictured will be demolished thanks to the decision by Justice Abraham Gerges.
Only the two buildings in the center of the photo are private property within the Atlantic Yards site, and both of them--Lots 19 and 28 of Block 1120 (see map below)--are scheduled not for the first phase of condemnation, but an unspecified later phase.
That saves Forest City Ratner cash and gives it more time to work on the upgraded railyard.
From the MGPP
From the 2009 Modified General Project Plan (MGPP) issued by the Empire State Development Corporation:
As noted above, ESDC will acquire certain portions of the Project Site pursuant to the EDPL in at least two phases. The first phase is expected to include that portion of the Project Site that is (i) necessary for the construction of the Arena and the buildings surrounding the Arena, (ii) necessary for the construction, development and operation of the Upgraded Yard (e.g., Lots 42 and 47 of Block 1121, Lot 35 of Block 1120 (or possibly a portion thereof or interest therein) and additional lots on the Project Site), and (iii) necessary for Arena Block and/or Upgraded Yard construction, staging, as well as parking (e.g., Block 1129 and Pacific Street between Carlton and Vanderbilt Avenues). The second and any subsequent phase is expected to include the balance of the Project Site, including the portion of Block 1128 that is included within the Project Site, Lots 19, 28 and the remainder of Lot 35 of Block 1120, and Site 5.(Emphases added)
Note that Lot 35 of Block 1120 is a parking lot, not visible behind the two buildings at issue.
The block and lot map (click to enlarge)