As of 2/1/18, as noted in the screenshot at right, "100% affordable" 38 Sixth was 23% leased, "100% affordable" 535 Carlton was 66% leased, and 50% affordable/50% market 461 Dean was 92% leased.
Those numbers compare to 0%, 51%, and 90% as of 10/26/17, as noted in a previous presentation. 535 Carlton had its official grand opening in June, but couldn't find enough takers for upper middle-income units in the lottery, and has had to offer a free month of rent. Half the building is in that "band." So it's still not going that fast.
Forest City's annual results
Yesterday, Forest City Realty Trust had good news regarding its 2017 Fourth-Quarter and Yearend Results, in a press release stating that 2017 fourth and annual earnings were up significantly compared to 2016 versions:
The primary drivers of the net earnings variance for the fourth quarter included higher gains on disposition of non-core assets, increased tax benefit and a 2016 interest rate swap breakage fee that did not recur. These positive factors were partially offset by higher organizational transformation costs and severance, compared with the fourth quarter of 2016.In other words, they are spending a bit more on severance, but they're not logging impairments (accounting losses).
In addition to these fourth-quarter factors, the net earnings variance for the full year was driven primarily by lower 2017 impairments, partially offset by 2016 gains from dispositions.
"On January 15, we announced an agreement with Greenland USA, our joint-venture partner at Pacific Park Brooklyn, to reduce our ownership in the JV going forward from 30 percent to 5 percent, and to increase Greenland's stake from 70 percent to 95 percent. The three multifamily buildings already completed by the JV will remain in the 70/30 structure, and Forest City will complete construction of the permanent rail yard at the site. Greenland will assume primary responsibility for vertical development of the remaining entitlement. Final closing of the agreement is pending necessary approvals and consents.Unmentioned: the cost of the transaction.
"As we noted in our press release announcing this change, this is a win-win for both companies, as well as for community partners and stakeholders. It allows us to continue to execute on our strategy of reducing development risk, and gives us added flexibility in capital allocation. We remain fully engaged at Pacific Park and we continue to believe strongly in New York City, our largest core market. We intend to maintain a significant presence in this important market."Well, they do have a significant presence with projects like MetroTech and more, as noted in the screenshot below, from the investor presentation. The question is whether they will start anything new.