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Forest City's Yu: new Pacific Park condos not likely in short term

Finding Deals In New York City Is Harder Than Ever, Bisnow reported yesterday, quoting, among others, Forest City Ratner (or is that Forest City New York) Executive Vice President of Development Susi Yu.

"I get plenty of deal opportunities on development opportunities, and I haven’t come across any that still pencil out," said Yu, calling landowners "unrealistic."

From the article:
While Forest City's actively selling condo project 550 Vanderbilt in its Pacific Park megaproject in Brooklyn continues to sell at asking prices, Yu said the stagnating condo market citywide would give her pause on starting Pacific Park's next residential building as condos.
Even though rents are flat while the city experiences a residential supply glut, she said she feels more confident in a rental project today than she would building for-sale.
"The city is in a perpetual state of housing crisis," she said. "At Pacific Park in our building with market-rate units, even though there's significant competition [with other developers close by] none of us are suffering."
Note that the only condo building they could build, and still get 421-a tax benefits, is B12, aka 615 Dean. It's grandfathered in. But apparently it's not economically wise. The other market-rate buildings, at least as of now, would have to include affordable units.

As to whether Forest City can continue to sell "at asking prices," we'll see. Similarly, the market-rate rentals have come with deals like three months free on a two-year lease.

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