Greenland, Forest City not in sync: joint venture overseer claims one or two towers may start this year; 25% affordable could be new configuration
Pacific Park’s developers will likely break ground on one or two new buildings by the end of the year, Greenland USA’s CEO Hu Gang said Thursday.LaRue was essentially repeating the company's stance, as expressed last November when it--presumably with Greenland--announced an unspecified pause in the project. Just two days ago a spokeswoman for the joint venture again expressed uncertainty about the project timing.
Gang added that the next building will likely be a rental building under the Affordable New York tax incentive program, with 25 percent of units set aside as affordable. He did not specify which site the developers plan to build on.
Gang’s comments are a departure from Forest City Realty Trust CEO David LaRue’s more cautious public stance. Speaking at REITWeek Monday, LaRue said there is no immediate timetable for further construction at the megaproject and that the partners will wait and see how the market responds to 30,000 new development residential units hitting the market across Brooklyn and Queens.
So, how to square this circle? A spokesperson for the joint venture told the Real Deal, "Forest City and Greenland USA continue to work in lockstep on Pacific Park Brooklyn – we both are committed to completion of the project and will move forward together with each individual building considering all critical factors like market conditions and 421a implications."
Two towers have been designed and are grandfathered in with 421-a benefits, including 615 Dean (B12), a condo, and 664 Pacific (B15), a 100% market-rate tower with a school. While the latter had been delayed by a legal dispute (and is still delayed by negotiations with a neighbor), there's no reason, other than the market, to pause 615 Dean.
|My October 2016 annotation of the tentative site plan, no longer accurate regarding timing and maybe configuration|
The Real Deal said "Sources close to the company say plans for the two sites are likely to change to take into account the new tax incentive program." Not necessarily, but if Gang does plan a building with 25% affordability, perhaps they're aiming for a different unbuilt site. That would likely be B13, another site on the southeast block.