According to a draft document obtained by this reporter, Forest City is considering a plan in which six of 14 residential towers contain exclusively market-rate towers (three rental, three condo). Of the remainder, two would be the just-announced 100 percent affordable rental buildings, five would follow the promised 50 percent affordable/50 percent market template for rentals, and one would mix condos and 50/50 rentals.
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…