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Downtown Brooklyn site half the size of P.C. Richard sells for more than four times ESD's offer

Last September, I wrote about the low-ball offer of $15.1 million that Empire State Development (ESD), the state authority overseeing/shepherding Atlantic Yards, made in February to P.C. Richard, which owns one of the two buildings at Site 5, across Flatbush Avenue from the Barclays Center.

That's well below the value of stated development rights, much less what is currently permitted (or might be permitted in the future) on the property. Of course, as I wrote, in New York eminent domain cases, the condemnor often low-balls owners of the subject property as a way to nudge them into negotiation and a presumably higher payment.

Consider: that site is 25,000 square feet, and a site in Downtown Brooklyn little more than half that just was sold for $68 million. As YIMBY reported two days ago, in Mixed-Use Development Site Expanded at 625 Fulton Street, Downtown Brooklyn, the 12,415-square-feet three story commercial building at 635 Fulton Street and Rockwell Place now expands the development site owned by Rabsky Group.

Rabsky, which bought 625 Fulton--adjacent to 80 DeKalb Avenue--from Forest City Ratner for $158 million, might build either a residential or office tower, with a significant 150,000 square feet of retail space, the Real Deal reported. Rabsky is being advised by Tucker Reed, former president of the Downtown Brooklyn Partnership.

In either' case, the market for residential and office space is in flux right now.

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