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Forest City: no real insight on Pacific Park timetable (but new tagline)

There wasn't much insight on the future of Pacific Park Brooklyn in yesterday's quarterly conference call held by Forest City Realty Trust (FCRT) executives with investment analysts.

At one point, CEO David LaRue was asked about the "apartment fundamentals" in Brooklyn.

"There's a tremendous amount of supply coming into Brooklyn," LaRue said. "Is the demand going to absorb that? We believe it will, but obviously new supply always takes time to absorb."

He suggested that the glut was a result of the expiration of the 421-a tax break, and now that it's back, "I think you'll get back to more of a steady state of delivery."

While the 421-a successor will apply to rental buildings, it will only support condo buildings of 35 units or fewer--throwing a huge potential wrench into future Pacific Park condos. He wasn't asked about that. (I'm guessing those investment analysts don't bother to read this blog.)

LaRue suggested that absorption of new supply will "take through this year and 2018," after which "normal growth rates" will resume. If so, that could make a case to start new towers this year, given a 2019 delivery, after four have been completed.

So far, however, Greenland Forest City Partners seems way more conservative about launching any new buildings. After all, the lease rate for the finished buildings is not super swift.

A new tag line

LaRue did note that FCRT had introduced a new tag line, "the power of place."
Our Vision
Our vision is to be the creative leader in realizing the power of place.
Our Mission
We create sustainable value by envisioning, owning and operating places where people, businesses, and communities thrive.

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