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Atlantic Yards/Pacific Park graphic: what's built/what's coming + FAQ (pinned post)

Leasing three sites raises nearly $199 million for Greenland, records suggest; that's nearly what Greenland paid; B12 and B13 to start next year

For leasing development rights to three Pacific Park parcels to two developers, Greenland Forest City Partners--owned 95% by Greenland USA--will get nearly $199 million, records suggest.

That's nearly the same amount that Greenland USA's parent Greenland Group paid in 2014 to enter the project. Forest City Enterprises. Forest City announced 12/20/13, "Under the terms of the definitive agreement, Greenland Group will make a capital contribution at closing of approximately $200 million to acquire a 70 percent equity interest in the project, excluding Barclays Center [operating company] and B2, the first residential building [aka 461 Dean]."

Now that payment also came with significant infrastructure obligations, such as the new railyard, the deck, and the public open space. But the contrast suggests--at least in broad strokes--that Forest City was operating from weakness; indeed, it announced a $242.4 million impairment on the deal.

After building three towers together and working on infrastructure, Greenland later acquired all but 5% of the project going forward from Forest City, for a yet-unstated sum.

Note that, at a 5% owner of the project going forward, Forest City--now owned by Brookfield--gets a piece of the deals with TF Cornerstone and The Brodsky Organization.

The TF Cornerstone deal

Yesterday, the Commercial Observer reported, TF Cornerstone Picks Up Two Pacific Park Sites for $143M, citing the leases for the sites B12 (615 Dean) and B13 (595 Dean), according to both a TF Cornerstone spokeswoman and public records.

The article updates the timing: the two towers, with some 800 rental apartments (likely at least 25% below market), will break ground next year, not this year.

Below are screenshots from ACRIS regarding property records. The total is $143,084,313, or nearly $143.1 million.

For 615 Dean, the cost was $70,545,064. That site is approved for a building with 317,185 square feet, according to project documents. For 595 Dean, the cost was $72,539,249, for a building with 327,215 square feet. So the slightly greater cost seems commensurate with the square footage.



The Brodsky Organization deal

The Commercial Observer article did not address the other site, B15, previously labeled as 664 Pacific but now apparently 662 Pacific, which has been acquired by The Brodsky Organization.

As shown in the screenshot below, ACRIS points to a deal value of $55,830,000, for a building that would be larger than the other two, at 341,910 square feet. The total would then be $198,914,313.

Why would Brodsky pay less money per square foot? Unclear, but it may have to do with the complication of building at that particular site, which does not have significant adjacent space for staging.

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