Will another Atlantic Yards/Pacific Park building start by end of year? Perhaps we'll learn next week.
Despite Oversupply, Developers Say Time To Build Apartments Is Now, Bisnow reported 11/6/17, given the gap in time between construction--during a glut in Manhattan and Brooklyn--and opening:
"Experienced developers realize now is the time to develop,” Alchemy Properties founder Ken Horn said at Bisnow’s New York City State of the Market event last week. “Hard costs are coming down now and contractors are a little hungrier. Building permits have gone down in the last two years about 70 to 80%.”The problem, Horn said, is that lenders are looking at the glut, rather than the pipeline.
"There’s a great deal of talk about oversupply in the rental marketplace and that’s particularly acute in some areas, like Downtown Brooklyn," Rose Associates Chief Operating Officer Brian Peters said, according to Bisnow. "The oversupply is going to prove to be temporary."
Another issue is the lack of land. However, Atlantic Yards/Pacific Park developer Greenland Forest City Partners already controls the land.
This past June, the Real Deal reported, quoting Greenland USA CEO Hu Gang, that one or two new buildings would likely break ground by the end of the year, with the first likely containing 25% affordable units, under the new Affordable New York program, which succeeded the 421-a tax break.
That would presumably be on Block 1121, the southeast block of the site, where two sites, B12 and B13, are cleared and unencumbered. The other option would be B15, just east of Sixth Avenue between Dean and Pacific streets, where a school is also planned, but that's been delayed by discussions with neighbors.
However, Forest City Realty Trust, which announced an indefinite pause in construction as of last November, has not seconded Greenland's comments.
So, would Greenland, which owns 70% of the project going forward (outside the arena operating company, owned by Mikhail Prokhorov, and B2/461 Dean, owned by Forest City), buy out Forest City's 30% share in a future development site?
Who knows. But we do know that Forest City has put 461 Dean on the block. And, as I've said, Atlantic Yards/Pacific Park is a never-say-never project.
Perhaps we'll learn more at the Nov. 14 Quality of Life meeting, where the developer typically offers project updates.