Skip to main content

What's a Prospect Heights condo worth? ESDC low-balls Goldstein (who once walked away from $500K profit) and overpromises the public

If you go by what the Empire State Development Corporation (ESDC) offered Develop Don't Destroy Brooklyn spokesman Daniel Goldstein for his condo in the Atlantic Yards footprint, and compare that to the values projected by ESDC consultant KPMG, you might suffer some vertigo.

After all, KMPG agrees that Forest City Ratner could get $1217/sf for condos in 2015, a figure that represents more than double the $600/sf price that consultant (for AY opponents) Joshua Kahr thinks is currently realistic.

KPMG says that the current condo market in Prospect Heights is $470-$1225/sf, though the latter seems a major stretch, limited perhaps to a few units in the Richard Meier-designed On Prospect Park, which isn't doing well and surely must be dropping prices.

And it's more than two-and-a-half times--by my calculation--what the ESDC is offering Goldstein.

Both extremes, I suspect, are unrealistic: the ESDC is low-balling Goldstein and KPMG (and Forest City Ratner) are overly optimistic. Whether Atlantic Yards proceeds or dies, it's unlikely Goldstein would ever (nearly) double his money, as Forest City Ratner once offered. (To be precise, his gain would've been 83%.)

Moving toward condemnation

Let's recap. On September 30, Goldstein called the Brian Lehrer Show to say that the ESDC, which aims to use eminent domain to take his and other remaining Atlantic Yards footprint property, had made its pre-vesting offer.

"They don't offer you just compensation," Goldstein declared, using the phrase derived from the Constitution (which, in the Fifth Amendment, says nor shall private property be taken for public use, without just compensation.)

"They don't even offer you fair market value. What they have offered is below the market value, any real estate agent would tell you that," he said. "It is even below what I paid for the place... over six years ago, and everybody knows the market is not lower.

City records show that, in May 2003, Goldstein paid $590,000 ($600,767.50 with closing costs), or $457.36 $465.71/sf for his 1290 sf condo. (A 2/27/05 New York Times article headlined HABITATS/Brooklyn; Battling A Developer's Mammoth Plans described the size at 1280 sf, but Goldstein confirmed it was 1290 sf.)

So let's assume the ESDC is offering him--to pick a round number--$450/sf. The ESDC is offering only $395/sf.

Fluctuating values

In 2005, Forest City Ratner offered everyone in his building $850/sf for their apartments, as noted in the DDDB response to the ESDC's Blight Study.

That wasn't exactly the market, because Forest City Ratner was paying for more: it not only got additional air rights, it removed potential opposition--remember the gag order?--and also could portray itself as trying to avoid condemnation.

The New York Daily News reported in a May 2004 front-page story:
That means people who paid about $600,000 for a swank three-bedroom, 1,300-foot condo just last year are being offered a cool $1.2 million to flee.

Of course, as I pointed out, not only would Forest City Ratner gain the opportunity to build much larger than current zoning, the land purchases were all funded by taxpayers--a relevant piece of information the Daily News chose to ignore.

Looking at the price per square foot

$457466: what Goldstein paid in 2003
$850: what Forest City Ratner paid in 2005 in one building
$850: what FCR estimated in 2006 it would get for Atlantic Yards condos
$600: what Joshua Kahr estimates is the current Brooklyn condo market
$470-$1225: what KPMG says is the current Prospect Heights market
$395$450: what (I estimate) Goldstein has been offered

Comments

  1. An in-contract sale at Newswalk, arguably the closest comparable to what might be built, just went for $526/sq foot.

    http://www.streeteasy.com/nyc/sale/386051-condo-535-dean-street-prospect-heights-brooklyn

    ReplyDelete
  2. Prices have already been slashed by 40% in the Richard Meier Aquarium known as On Prospect Park. If one chooses to believe The New York Times (our so-called newspaper of record)the Times reported this fact in a big, puffy p.1 Sunday "Metropolitan" section piece @ 3 weeks ago. Celebritecht Meier's glass-aquaria-boxes are selling hardly at all.
    -- Patti Hagan

    ReplyDelete

Post a Comment

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…

No, security guards can't ban photos. Questions remain about visibility of ID/sticker system.

The bi-monthly Atlantic Yards/Pacific Park Community Update meeting June 14, held at 55 Hanson Place, addressed multiple issues, including delays in the project, a new detente with project neighbors,concerns about traffic congestion, upcoming sewer work and demolitions, and an explanation of how high winds caused debris to fly off the under-construction 38 Sixth Avenue building. I'll have more coverage.
Security issues came up several times at the meeting.
Wayne Bailey, a resident who regularly takes photos and videos (that I often use) of construction/operations issues that impact residents, asked representatives of Tishman Construction if the security guard at the sites they're building works for them.
After Tishman Senior VP Eric Reid said yes, Bailey asked why a guard told him not to shoot video of the site, even though he was on a public street.

"I will address it with principals for that security firm," Reid said.
Forest City Ratner executive Ashley Cotton, the …

Barclays Center event June 11 to protest plans to expand Israeli draft; questions about logistics

At right is a photo of a poster spotted in Hasidic Williamsburg right. Clearly there's an event scheduled at the Barclays Center aimed at the Haredi Jewish community (strict Orthodox Jews who reject secular culture), but the lack of English text makes it cryptic.

The website Matzav.com explains, Protest Against Israeli Draft of Bnei Yeshiva Rescheduled for Barclays Center:
A large asifa to protest the drafting of bnei yeshiva in Eretz Yisroel into the Israeli army that had been set to take place this month will instead be held on Sunday, 17 Sivan/June 11, at the Barclays Center in Downtown Brooklyn, NY. So attendees at a big gathering will protest an apparent change of policy that will make it much more difficult for traditional Orthodox Jewish students--both Hasidic (who follow a rebbe) and non-Hasidic (who don't)--to get deferments from the draft. Comments on the Yeshiva World website explain some of the debate.

The logistical questions

What's unclear is how large the ev…

Atlantic Yards/Pacific Park graphic: what's built/what might be coming (post-dated pinned post)

Click on graphic to enlarge. This is post-dated to stay at the top of the blog. It will be updated as announced configurations change and buildings launch. The August 2014 tentative configurations proposed by developer Greenland Forest City Partners will change, and the project is already well behind that tentative timetable.


Not quite the pattern: Greenland selling development sites, not completed condos

Real Estate Weekly, reporting on trends in Chinese investment in New York City, on 11/18/15 quoted Jim Costello, a senior vice president at research firm Real Capital Analytics:
“They’re typically building high-end condos, build it and sell it. Capital return is in a few years. That’s something that is ingrained in the companies that have been coming here because that’s how they’ve grown in the last 35 years. It’s always been a development game for them. So they’re just repeating their business model here,” he said. When I read that last November, I didn't think it necessarily applied to Atlantic Yards/Pacific Park, now 70% owned (outside of the Barclays Center and B2 modular apartment tower), by the Greenland Group, owned significantly by the Shanghai government.
A majority of the buildings will be rentals, some 100% market, some 100% affordable, and several--the last several built--are supposed to be 50% market/50% subsidized. (See tentative timetable below.)

Selling development …

Atlanta's Atlantic Yards moves ahead

First mentioned in April, the Atlantic Yards project in Atlanta is moving ahead--and has the potential to nudge Atlantic Yards in Brooklyn further down in Google searches.

According to a 5/30/17 press release, Hines and Invesco Real Estate Announce T3 West Midtown and Atlantic Yards:
Hines, the international real estate firm, and Invesco Real Estate, a global real estate investment manager, today announced a joint venture on behalf of one of Invesco Real Estate’s institutional clients to develop two progressive office projects in Atlanta totalling 700,000 square feet. T3 West Midtown will be a 200,000-square-foot heavy timber office development and Atlantic Yards will consist of 500,000 square feet of progressive office space in two buildings. Both projects are located on sites within Atlantic Station in the flourishing Midtown submarket.
Hines will work with Hartshorne Plunkard Architecture (HPA) as the design architect for both T3 West Midtown and Atlantic Yards. DLR Group will be t…