Forest City selling Downtown Brooklyn site for far more than it'll pay for Vanderbilt Yard, though latter offers six times the development rights
Crain's New York Business yesterday wrote, Forest City puts $185M downtown B'klyn site on market:
Forest City Ratner Cos. is looking to either sell a development site it owns in downtown Brooklyn worth an estimated $185 million, or find a developer willing to partner with Forest City Ratner on building a residential tower there, the company confirmed Monday.While the price is based on an estimated $300 per buildable square foot at the former chocolate factory--which once held offices, including that of Atlantic Yards Community Benefits Agreement signatory BUILD-- it's possible the price could go even higher, to $350 per square foot or more, according to Crain's.
The site, at 625 Fulton St., between Hudson Avenue and Rockwell Place, is being marketed by CBRE Group, and has the potential for more than 600,000 square feet of residential space, according to city records. The details of the potential sale were first reported by Real Estate Alert late last month.
It's a remarkable turnaround for a site that, earlier this year, left Forest City technically in default on the mortgage, as noted by Crain's. It's also interesting that Forest City's partner on Atlantic Yards, the Chinese government-owned Greenland Group, is not (yet) a partner on this new site.
The huge gain
Not only does the sale likely represent a huge gain for Forest City, which bought the land in 1989 when real estate was cheap, it offers a significant contrast with what Forest City--now Greenland Forest City partners--will pay for the Vanderbilt Yard development rights, the key public property that's part of the Atlantic Yards/Pacific Park project.
As I wrote in March, development rights for the 8.5-acre Vanderbilt Yard, after a MTA-requested appraisal, were appraised in 2005 at $75 per buildable square foot, for more than 3.6 million square feet. That's six times the buildable area offered at 625 Fulton.