Sunday, April 05, 2015

A new $6.6 billion price tag for (the rest of) Atlantic Yards/Pacific Park?

Since 2009, Atlantic Yards has been described as a $4.9 billion project, rounded up to $5 billion, though it started in 2003 at $2.5 billion project, and costs escalated to $4 billion.

A fact sheet  (right) I picked up last week regarding the next tower to be built--more on that shortly--continues to describe the project as $4.9 billion.

Does that make sense? After all, construction costs have gone up in 5+ years.

Moreover, the developers--Greenland Forest City Partners--no longer plan to build the entire project via cost-saving modular technology. (It's unclear how many more towers would be built modular.).

A very interesting number was buried in a 9/16/14 press release issued by Greenland Holding Group, the new majority owner of Atlantic Yards/Pacific Park (excluding the arena and B2 modular tower) regarding a new investment in Canada:
In March 2014, the company announced the development of a (US) $1 billion project in London’s Canary Wharf district, the company’s continuing foray into the UK real estate market. At the end of 2013, Greenland announced the investment into a project named Atlantic Yards located in the centre of Brooklyn, NY now known as Pacific Park, adjacent to the Barclays Center and the largest shopping center in Brooklyn. The development is the largest real estate project in New York in over 20 years. The project will cover 600,000 square meters buildable area with a total investment of (US) $6.6 billion.
(Emphasis added)

Note that 600,000 square meters is about 6.5 million square feet, so that figure seems to be excluding both the arena and the B2 tower, not built by Greenland Forest City.

If so, the overall cost of the project would exceed $7.8 billion. If not, then the project would be somewhat smaller in square footage than projected.

It's hardly implausible that the numbers could change.

If so, why hasn't the updated cost estimate been announced more broadly?

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