Skip to main content

Forest City Ratner's ambitious plans for its Atlantic Terminal and (blighted) Atlantic Center malls; new towers not yet on the table, but new retail surely in sight

In Brooklyn Nets a Mega Mall: Forest City Mulls What’s Next for Atlantic Terminal and Atlantic Center, the Observer's Matt Chaban writes:
While everyone (but the neighbors and former neighbors) is looking forward to the opening of the new arena, Forest City Ratner now has its eyes trained across the street, to the two malls it owns there.
Atlantic Center
Everyone? Really?

But it surely is worth pointing out, to use Michael D.D. White's "mega-monopoly" term, that Forest City Ratner's Atlantic Yards project was sure to rain benefits on the developer's adjacent malls, and that should have reflected in the public negotiations.

New opportunities

One opportunity is replacing existing tenants with more upscale retail, as well as more food and beverage. Chaban adds:
Ms. [MaryAnne] Gilmartin even raised the possibility of reskinning the building, replacing its imposing brick façade with something more modern and inviting. The appearance of the mall has long been decried by some in the community for turning its back on the neighborhood, particularly the housing projects behind the building in Fort Greene. Almost two decades after the Atlantic Center was built, this has become a very different neighborhood, one retailers are hopefully less afraid of.
Atlantic Center, from the back.
Actually, it's the Atlantic Center Mall that has an imposing brick facade, while the Atlantic Center is known for a facade of blank walls, at least on the sides not open to customers, and thus the "ugliest building in Brooklyn," as per critic Francis Morrone. And it's even blighted, under state guidelines.

The overbuild

Chaban writes:
One piece in the possible architectural transformation of the two malls is more than a million square feet of development rights Forest City still holds on the property. Together, the two malls equal a little less than 800,000 square feet, meaning an expansion could more than double the space.

This does not necessarily have to be retail development, as the Atlantic Terminal building already has an office tower on top, known as 2 Hanson Place. As Norman Oder pointed out back in 2006, preliminary designs for the Atlantic Yards project revealed three towers atop the mall, tucked away in the background and unmentioned in discussions of the project.
The upshot: Forest City hasn't decided, but they know Brooklyn's hot--they heard it at a shopping center conference last month in Las Vegas, and they--and other landowners--will take the opportunity.

Thriving center?

It's unclear exactly which mall Gilmartin is referring to below, but I think it's Atlantic Center, because that's where the biggest potential upgrade would be:
But Forest City is also striving not to kill the goose that laid the golden egg. “This is a thriving center, with some of the most profitable stores in the country for these retailers, and we do not want to threaten that,” Ms. Gilmartin said. “But short of razing the building, which is not realistic, everything is on the table.”
If so, is she counting the Department of Motor Vehicles, which isn't open at night, as part of the "thriving center"?

Comments

Popular posts from this blog

Barclays Center/Levy Restaurants hit with suit charging discrimination on disability, race; supervisors said to use vicious slurs, pursue retaliation

The Daily News has an article today, Barclays Center hit with $5M suit claiming discrimination against disabled, while the New York Post headlined its article Barclays Center sued over taunting disabled employees.

While that's part of the lawsuit, more prominent are claims of racial discrimination and retaliation, with black employees claiming repeated abuse by white supervisors, preferential treatment toward Hispanic colleagues, and retaliation in response to complaints.

Two individual supervisors, for example, are charged with  referring to black employees as “black motherfucker,” “dumb black bitch,” “black monkey,” “piece of shit” and “nigger.”

Two have referred to an employee blind in one eye as “cyclops,” and “the one-eyed guy,” and an employee with a nose disorder as “the nose guy.”

There's been no official response yet though arena spokesman Barry Baum told the Daily News they, but take “allegations of this kind very seriously” and have "a zero tolerance policy for…

Behind the "empty railyards": 40 years of ATURA, Baruch's plan, and the city's diffidence

To supporters of Forest City Ratner's Atlantic Yards project, it's a long-awaited plan for long-overlooked land. "The Atlantic Yards area has been available for any developer in America for over 100 years,” declared Borough President Marty Markowitz at a 5/26/05 City Council hearing.

Charles Gargano, chairman of the Empire State Development Corporation, mused on 11/15/05 to WNYC's Brian Lehrer, “Isn’t it interesting that these railyards have sat for decades and decades and decades, and no one has done a thing about them.” Forest City Ratner spokesman Joe DePlasco, in a 12/19/04 New York Times article ("In a War of Words, One Has the Power to Wound") described the railyards as "an empty scar dividing the community."

But why exactly has the Metropolitan Transportation Authority’s Vanderbilt Yard never been developed? Do public officials have some responsibility?

At a hearing yesterday of the Brooklyn Borough Board Atlantic Yards Committee, Kate Suisma…

Forest City acknowledges unspecified delays in Pacific Park, cites $300 million "impairment" in project value; what about affordable housing pledge?

Updated Monday Nov. 7 am: Note follow-up coverage of stock price drop and investor conference call and pending questions.

Pacific Park Brooklyn is seriously delayed, Forest City Realty Trust said yesterday in a news release, which further acknowledged that the project has caused a $300 million impairment, or write-down of the asset, as the expected revenues no longer exceed the carrying cost.

The Cleveland-based developer, parent of Brooklyn-based Forest City Ratner, which is a 30% investor in Pacific Park along with 70% partner/overseer Greenland USA, blamed the "significant impairment" on an oversupply of market-rate apartments, the uncertain fate of the 421-a tax break, and a continued increase in construction costs.

While the delay essentially confirms the obvious, given that two major buildings have not launched despite plans to do so, it raises significant questions about the future of the project, including:
if market-rate construction is delayed, will the affordable h…

Revising official figures, new report reveals Nets averaged just 11,622 home fans last season, Islanders drew 11,200 (and have option to leave in 2018)

The Brooklyn Nets drew an average of only 11,622 fans per home game in their most recent (and lousy) season, more than 23% below the announced official attendance figure, and little more than 65% of the Barclays Center's capacity.

The New York Islanders also drew some 19.4% below announced attendance, or 11,200 fans per home game.

The surprising numbers were disclosed in a consultant's report attached to the Preliminary Official Statement for the refinancing of some $462 million in tax-exempt bonds for the Barclays Center (plus another $20 million in taxable bonds). The refinancing should lower costs to Mikhail Prokhorov, owner of the arena operating company, by and average of $3.4 million a year through 2044 in paying off arena construction.

According to official figures, the Brooklyn Nets attendance averaged 17,187 in the debut season, 2012-13, 17,251 in 2013-14, 17,037 in 2014-15, and 15,125 in the most recent season, 2015-16. For hoops, the arena holds 17,732.

But official…

So, Forest City has some property subject to the future Gowanus rezoning

Writing yesterday, MAP: Who Owns All the Property Along the Gowanus Canal, DNAinfo's Leslie Albrecht lays out the positioning of various real estate players along the Gowanus Canal, a Superfund site:
As the city considers whether to rezone Gowanus and, perhaps, morph the gritty low-rise industrial area into a hot new neighborhood of residential towers (albeit at a fraction of the height of Manhattan's supertall buildings), DNAinfo reviewed property records along the canal to find out who stands to benefit most from the changes.
Investors have poured at least $440 million into buying land on the polluted waterway and more than a third of the properties have changed hands in the past decade, according to an examination of records for the nearly 130 properties along the 1.8-mile canal. While the single largest landowner is developer Property Markets Group, other landowners include Kushner Companies, Alloy Development, Two Trees, and Forest City New York.

Forest City's plans unc…

At 550 Vanderbilt, big chunk of apartments pitched to Chinese buyers as "international units"

One key to sales at the 550 Vanderbilt condo is the connection to China, thanks to Shanghai-based developer Greenland Holdings.

It's the parent of Greenland USA, which as part of Greenland Forest City Partners owns 70% of Pacific Park (except 461 Dean and the arena).

And sales in China may help explain how the developer was able to claim early momentum.
"Since 550 Vanderbilt launched pre-sales in June [2015], more than 80 residences have gone into contract, representing over 30% of the building’s 278 total residences," the developer said in a 9/25/15 press release announcing the opening of a sales gallery in Brooklyn. "The strong response from the marketplace indicates the high level of demand for well-designed new luxury homes in Brooklyn..."

Maybe. Or maybe it just meant a decent initial pipeline to Chinese buyers.

As lawyer Jay Neveloff, who represents Forest City, told the Real Deal in 2015, a project involving a Chinese firm "creates a huge market for…