Atlantic Yards/Pacific Park in 2024: new developer Related on tap; plans surface to supersize project + expand Site 5; Tsai sells valuable BSE Global stake to Kochs, pursues new Brooklyn "ecosystem"
 |
| Barclays Center block, Dec. 30, 2024 |
Well, as I wrote in my preliminary year-end roundup, in my Substack newsletter (sign up!), there was no new construction, but it was a big year.
A new joint venture, involving Hudson Yards developer Related Companies, emerged, poised to take over those six valuable sites, which require an expensive deck over the Metropolitan Transportation Authority's Vanderbilt Yard, but nothing moved forward formally.
Thus no tower construction nor construction of the railyard platform started. Nor do we know future project terms, though it's obvious that the May 2025 deadline to build 876 more affordable units won't be met.
So a renegotiation is inevitable.
Indeed, the contours of a new project plan emerged not thanks to any statement by Empire State Development (ESD), the state authority that oversees/shepherds the project, but rather my Freedom of Information Law request, amplified by new graphics by my invaluable collaborator Ben Keel.
 |
| Screenshot from my newsletter |
That delivered the astonishing news that longstanding master developer Greenland USA in early 2023 sought to avert foreclosure and financial pain but supersizing the project.
That would mean adding 1 million more valuable square feet to the railyard sites, pushing out deadlines, and, yes, promising more, albeit delayed affordable housing.
 |
| Unofficial rendering |
A new Site 5 plan
We also learned that that ESD had in October 2021 secretly agreed to support an even larger project (than proposed on 2015-2016, itself far larger than what was approved in 2006) at Site 5, longtime home of P.C. Richard and the now-closed Modell's, moving bulk from the unbuilt "Miss Brooklyn" tower (B1) once planned to loom over the arena.
The upshot: potentially nearly 2,700 more apartments than approved at both the railyard sites and Site 5, part of some 5,900 more to go.
If those proposed numbers pan out, expanding the approved apartment total from 6,430 to more than 9,110, that suggests that Atlantic Yards/Pacific Park, with at least half the buildings finished, might only be only 35% complete in terms of units.
The Site 5 plan would make the arena plaza permanent, saving Greenland USA the headache of building B1 and arena operator BSE Global from the headache of managing a venue during disruptive construction.
The plaza, as I've argued, is enormously valuable to the arena operator, and they should pay for the privilege. It's now on its fourth sponsor: Ticketmaster Plaza.
After all, the plaza provides an indispensable place for arena crowds to gather, as well as significant canvas for promotion (like the "We Belong Here"/"You Belong Here" signage) and advertising, far more than would be available than if BSE Global controlled the Urban Room, the atrium planned to be attached to the unbuilt flagship tower.
By the end of the 2024, ESD had publicly agreed to pursue "community engagement," which is either--take your pick--aimed at gaining feedback or pacifying the public, but wasn't ready to disclose what exactly the feedback would concern.
The cost of delay
The contours of the affordability obligation—recent units have been below-market but not very affordable—also remain at issue.
As Keel's useful graphic shows, and as I've reported for Common Edge, delay has its costs.
Not only were the developers of the four most recent towers able to take advantage of the now-expired 421-a tax break, which allowed for 30% middle-income units, the base for calculating affordability, Area Median Income (AMI), keeps rising, making those units ever more costly, aimed mostly at households earning six figures.
Moreover, delay means that financing costs and subsidy/tax break programs change, upending previous assumptions.
The surprises
Those giant plans were among the inevitable Atlantic Yards surprises. Another one, perhaps, is that Greenland USA doesn't want to walk away from the project but rather seeks to reap revenue from Site 5, either by developing that with a partner, or selling the site.
 |
| "We belong here" may get an expanded meaning |
The other big surprises involved BSE Global, the company, owned by Joe and Clara Wu Tsai, which owns the Brooklyn Nets, New York Liberty, arena operating company, and more.
Despite the Nets' mediocrity--some said it and the surging New York Knicks had swapped fates--an arena and NBA team in the world's media capital is a scarce and valuable asset, and the Koch family, their fortune associated with notorious right-wing causes championed by the late David Koch, agreed to buy 15% at an astonishing valuation of $6 billion.
Note: while some rightly point out that the Koch family is #sportswashing its politics in a liberal state (and investing in a project that relies on very un-libertarian eminent domain and monopoly), it’s hard to think the Nets would be much more tainted than they already are.
The Tsais took that payday to pay down debt and to embark on an ambitious project to create a Brooklyn "ecosystem" of media, retail, and events. (It did not, of course, go to affordable housing, though the fate of the team/arena and the rest of the project were once seen as intertwined.)
That includes the takeover of Brooklyn Magazine, now BK Mag, the purchase of the retail condo in the nearby Williamsburgh Savings Bank, a share of the revamped Brooklyn Paramount venue, and plans for a hotel (in Site 5?), conference center, and more.
BSE also plans to expand its Brooklyn Basketball youth program to the shuttered Modell’s store (and, perhaps, to another nearby location after the Site 5 project starts).
Neighborhood impacts
The arena was busier--credit the switch to Ticketmaster from SeatGeek--but the biggest project impacts came from non-ticketed events, like a Catholic gathering in July and a Jewish gathering in December, which drew numerous double-parked buses
 |
| Blocking off Dean Street |
The latter event, astonishingly. prompted the Police Department to set aside Pacific Street between Sixth and Carlton avenues for private parking, with access outsourced to the private Shomrim patrol. That patrol also blocked off Dean Street between Flatbush and Sixth.
The open space around the 595 Dean towers opened up, but not without controversy. The dog run--actually two--was so noisy that neighbors in the west side of the West Tower complained, forcing a new focus on the Pacific Park Conservancy, which supposedly manages the open space.
A new school, known as the Pacific Park Campus, opened in the base of the B15 tower, 662 Pacific Street, including Design Works High School, plus M.S. 915, and a small special needs program associated with that intermediate school. So far, it hasn't had a big impact.
An expected sewer installation on Dean Street between Sixth and Carlton avenues didn't start but instead was delayed (and should start next week).
The Atlantic Avenue Mixed-Use Project (AAMUP), the plan to rezone the area just east of Vanderbilt Avenue, the eastern end of the Atlantic Yards/Pacific Park footprint, with not only higher densities but also civic investments, including open space and road improvements, moved forward, but has not yet passed.
Two large buildings on Atlantic Avenue, the product of spot rezonings, have risen 17 stories, though they're not complete.
 |
| SIMÒ pizza, East Tower of 595 Dean |
Most but not all of the extant project perimeter retail got filled in. SIMÒ pizza and the Fujianese restaurant Nin Hao opened at the base of the two-tower 595 Dean.
At 461 Dean, which opened flanking the arena in 2016, a longtime empty space was occupied by Pure Green Juice Bar.
At 38 Sixth Avenue, retail space at Dean Street, once occupied by construction teams, is now occupied by Heart of Chelsea Veterinary Hospital.
At 18 Sixth Ave. (aka Brooklyn Crossing), a Life Time Fitness opened over three floors, joining ground-floor Spear Physical Therapy. Also opening: the facial chain Glowbar. (One ground-floor space, perhaps for a restaurant, awaits.)
 |
| Pure Green at 461 Dean |
The Triangle Building at Fifth and Flatbush avenues still awaits renovation. While a branch of Rihanna's Savage x Fenty lingerie shop was supposed to arrive, so for its just been a billboard.
Meanwhile, a major space on Pacific Street near Flatbush, across from the arena, is finally under transformation, perhaps to become a Walgreens.
What I called "the craziest situation near the arena" was tamed somewhat: the huge volume of delivery guys, with e-bikes, gathering outside Chick-fil-A (and Shake Shack) on Flatbush Avenue across the street was diminished when Chick-fil-A opened a second location on Atlantic Avenue.
Accountability questions
 |
| Looking east from Sixth Avenue toward six development sites over the Vanderbilt Yard |
The (purportedly) advisory Atlantic Yards Community Development Corporation (AY CDC) did meet more frequently this year, but 1) was asked to go into dubious executive session and 2) spent an entire meeting discussing the future of Site 5 without being told Empire State Development had already agreed to back a 2021 version.
The coalition BrooklynSpeaks, led by a handful of people but backed by neighborhood groups near the project site, has the ear of local elected officials, and has briefed them on issues, arguing that they should ensure deeply affordable housing and have the arena operator fund monitors of community impacts. (I think that's a good start, but the arena should pay even more.)
One lingering question, though: to get the affordable housing, would BrooklynSpeaks endorse the developer's desire to build ever bigger? For now, the elected officials themselves have been quiet.
New York State's Atlantic Yards oversight only goes so far, and certainly not the quality of project landlords.
However, the increasingly frustrated tenants later had to go to court to force landlord Avanath to improve building conditions.
Original developer blasé Bruce Ratner, in an interview promoting his new book (as health crusader), tells Brian Lehrer that the unfinished Atlantic Yards is "not the end of the world." Deflecting past promises, he says it's government's job to build affordable housing.
What I've been doing
I planned to launch my Substack newsletter, Learning from Atlantic Yards/Pacific Park, in December 2023, when I thought there would be a lull in the project. Instead, there was a lot more to write about.
Readers of the newsletter get a weekly (or sometimes biweekly) roundup of everything published on this blog, plus freelance articles, and other commentary. They also get some longer original articles and efforts to establish definitive answers to project questions.
 |
| Screenshot: CommonEdge |
Or my two most popular articles: To Rescue Atlantic Yards, Developer Sought to Supersize Project and New Renderings (& Animation): Towers Along Atlantic Avenue.
Newsletter readers also get alerts of my freelance pieces, which this year included articles in Common Edge, Urban Omnibus, and City Limits. (Thanks to editors, respectively, Martin Pedersen, Mariana Mogilevich, and Jeanmarie Evelly.)
Urban Omnibus published Watch This Space, my overview, as of May 2024, of Atlantic Yards history. It's a good place for newbies to start, though the story is 1) of course more complicated and 2) has become more complicated since then.
Below, a quick, month-by-month slalom.
January 2024
It's the oversight, right? New York State has let the developer off the hook. Why no legislative hearings?
Though intermediate school long planned for B15 tower (Dean/6th), NYC now seeks to relocate Design Works H.S. & smaller middle school (+ special needs program)
The two-tower 595 Dean is offering two months free on a 14-month lease,
Does Atlantic Yards need a plan? Or a process?Two advocates from BrooklynSpeaks propose a new LDC and federal help for affordable housing. Maybe caution is in order.
Greenland Forest City sells retail condos at base of 550 Vanderbilt for $5.8M, after touting "below-market rents." Last Forest City holding of consequence?
New renderings (& animation): towers along Atlantic Avenue, thanks to designer Ben Keel. As approved, six large towers, containing nearly 3.5 million square feet, would change the streetscape.
 |
| The future of Atlantic Avenue (pre-supersizing)? |
Though Brooklyn Nets lost badly in Paris, it was part of new international marketing strategy. (Biggie, pizza.) 36% of single-game tickets sold to foreign visitors.
Curbed reports that "Travis Scott Made Dean Street Quake." Or, more specifically, the 461 Dean tower flanking the arena. In other words, the soundproofing doesn't work completely.
The EB-5 marketing from 2014 looks even worse now. Back in 2014, the pitch for "golden visas" blatantly misled Chinese immigrant investors. What could go wrong?
 |
| From Atlantic Yards III EB-5 promotion in China |
The last four Atlantic Yards towers are New York State-supported, with no local preference.
Asleep at the watch on the EB-5 loans: had New York State done required due diligence on the transactions and/or the spending, it might have staved off foreclosure.
At Atlantic Yards Community Development Corporation meeting, questions about Site 5. Gib Veconi brought up the question of due diligence on the EB-5 loans now in foreclosure. AY CDC directors ask for reports on EB-5 spending.
With the collapse of Evergrande, other Chinese property developers under scrutiny; Greenland Holding, parent of Greenland USA, still struggling.
February 2024
Magical thinking: ESD CEO says developer Greenland might meet 2025 affordable housing deadline by converting existing market-rate units. (Nope.)
Developer certified that EB-5 spending was compliant, but evidence shows otherwise, New York State limited use of investor visa funds, targeting railyard tower sites. But the money was reported as supporting two other towers.
At Atlantic Yards Community Development Corporation meeting, questions about Site 5. Gib Veconi brought up the question of due diligence on the EB-5 loans now in foreclosure. AY CDC directors ask for reports on EB-5 spending.
With the collapse of Evergrande, other Chinese property developers under scrutiny; Greenland Holding, parent of Greenland USA, still struggling.
February 2024
Magical thinking: ESD CEO says developer Greenland might meet 2025 affordable housing deadline by converting existing market-rate units. (Nope.)
Developer certified that EB-5 spending was compliant, but evidence shows otherwise, New York State limited use of investor visa funds, targeting railyard tower sites. But the money was reported as supporting two other towers.
 |
| Arrow added, as well as adjacent box, to highlight questionable claims |
No surprise: "Atlantic Yards III," the second loan in foreclosure, also involved construction of ineligible tower(s), Evidence shows job-creation credit was claimed for 535 Carlton and maybe even its unbuilt neighbor.
Did EB-5 funds help build the Barclays Center? Despite promoters' hype and even a governmental report on investor visas, the answer is no--and the reality more troubling.
Years later, reflections on an EB-5 scam in Vermont, once promoted as a model: "The whole program, it turned out, lent itself to dishonesty."
Council Member Crystal Hudson, maintaining stance that proposed 962 Pacific spot rezoning should wait for neighborhood rezoning, votes it down. Can she deliver with Atlantic Avenue Mixed-Use Project? The Real Deal claims Hudson asked 962 Pacific owner to build "100% affordable" housing elsewhere give $5-$10M; she says that's untrue.
Council Member Chi Ossé's viral YIMBY video generates praise, but the Atlantic Avenue Mixed-Use Plan debate is over affordability, not whether to increase supply.
 |
| Brooklyn Nets promotion |
The floundering Nets' latest ticket promotion has no stars for fallback.
Floundering Nets fire Coach Jacque Vaughn, but now GM Sean Marks is on the hot seat, with maybe one more chance to right the franchise.
Members of notorious (David) Koch family said to be seeking 10%-15% of Brooklyn Nets & arena company. If valuation is $4.8 billion, as rumored, then Joe Tsai will have scored.
The Philadelphia 76ers' arena gambit. The Brooklyn Nets may sell a slice of the team. A (contested) new arena could also boost the Sixers.
"Skyscraper queen" Darcy Stacom leaves CBRE; she'd brokered Atlantic Yards.
Members of notorious (David) Koch family said to be seeking 10%-15% of Brooklyn Nets & arena company. If valuation is $4.8 billion, as rumored, then Joe Tsai will have scored.
The Philadelphia 76ers' arena gambit. The Brooklyn Nets may sell a slice of the team. A (contested) new arena could also boost the Sixers.
"Skyscraper queen" Darcy Stacom leaves CBRE; she'd brokered Atlantic Yards.
No, modular construction start-up didn't build high-rise in a day. Assembly OSM has ties to Forest City's B2 modular tower, now seen as "hairy, crazy idea."
The Department of Education schools approves re-siting of two schools to what was once expected to be I.S. 653, at the base of 662 Pacific Street (aka B15), with the school address 491 Dean Street. Moving: the intermediate school M.S. 915; Bridges: a School of Exploration and Equity, from Downtown Brooklyn, and the new Design Works High School, which for its launch was temporarily sited in Downtown Brooklyn. Also: a special needs program.
Signage now for Life Cafe, part of LifeTime Fitness, coming at 18 Sixth Ave. near Atlantic Ave. in base of B4 (aka Brooklyn Crossing).
March 2024
Now FBI raids Bronx homes of Winnie Greco, longtime Brooklyn BP liaison to Chinese community, more recently an aide to Mayor Adams.
Account of Downtown Brooklyn luxury living ignores failure to require affordability in upzoning. Serhant swivels from promoting "park" to in-building lifestyle.
 |
| Screenshot from Twitter/X |
C'mon, the #sportswashing began long ago. But it would be ironic for the libertarian Koch family to profit from eminent domain, sports subsidies, & NBA "socialism."
The big Atlantic Yards winners? Billionaire team owners Prokhorov and Tsai. The Brooklyn Nets' boom in value relies on the government-aided Barclays Center. Why can't the public get some of the upside?
With questionable timing, BSE Global reveals plan to swap 30 suites for freer-flowing club spaces, one inspired by (?!?) historic brownstones.
From columnist John Hollinger in The Athletic: Have Knicks, Nets swapped destinies?
At Atlantic Yards meeting, state officials acknowledge project is stalled. ESD finally provides more info on project's affordable housing record, but it doesn't stress the middle-income skew. ESD says (mystery) documents confirm that $349M in EB-5 funds were spent appropriately. Other evidence raises doubts.
Foregone property taxes on Barclays Center site now estimated at $110.2 million. Payments in lieu of (some) taxes go not to NYC but pay off cheap construction debt.
April 2024
The failure to do due diligence on the second EB-5 loan looms. New York State's (partial) defense of its oversight didn't address why it allowed dilution of the developer's collateral. That question should be asked.
Looming: the May 12, 2025 deadline to start the platform. But there's an "Unavoidable Delays" escape hatch and a penalty that might not be painful.
A return for the 421-a tax break? If so, likely no more towers with "affordable" units only at 130% of Area Median Income (AMI), aimed at six-figure earners.
Flashback: the "zoning lot" hustle. In 2017, eleven rental apartments at 535 Carlton got cheaper. That saved condo buyers down the block at 550 Vanderbilt millions.
The big Atlantic Yards winners? Billionaire team owners Prokhorov and Tsai. The Brooklyn Nets' boom in value relies on the government-aided Barclays Center. Why can't the public get some of the upside?
With questionable timing, BSE Global reveals plan to swap 30 suites for freer-flowing club spaces, one inspired by (?!?) historic brownstones.
From columnist John Hollinger in The Athletic: Have Knicks, Nets swapped destinies?
At Atlantic Yards meeting, state officials acknowledge project is stalled. ESD finally provides more info on project's affordable housing record, but it doesn't stress the middle-income skew. ESD says (mystery) documents confirm that $349M in EB-5 funds were spent appropriately. Other evidence raises doubts.
Foregone property taxes on Barclays Center site now estimated at $110.2 million. Payments in lieu of (some) taxes go not to NYC but pay off cheap construction debt.
April 2024
The failure to do due diligence on the second EB-5 loan looms. New York State's (partial) defense of its oversight didn't address why it allowed dilution of the developer's collateral. That question should be asked.
Looming: the May 12, 2025 deadline to start the platform. But there's an "Unavoidable Delays" escape hatch and a penalty that might not be painful.
A return for the 421-a tax break? If so, likely no more towers with "affordable" units only at 130% of Area Median Income (AMI), aimed at six-figure earners.
Flashback: the "zoning lot" hustle. In 2017, eleven rental apartments at 535 Carlton got cheaper. That saved condo buyers down the block at 550 Vanderbilt millions.
 |
| Rihanna billboards at Triangle Building |
Broadening the affordable housing applicant pool: when the housing lease-up extends into a new AMI calculation and new income ceilings, that's helpful to the landlord.
The Brooklyn Nets report nearly 99% attendance at Barclays Center home games. However, gate count and *paid* tickets unclear.
Does ESD have discretion over a potential transfer of development rights in foreclosure? Yes, but the conditions may not be onerous.
Weren't half the "affordable" apartments supposed to be family sized? Well, in floor area, but they haven't come close. Studios and 1-bedrooms predominate.
 |
| All of these are "low-income" |
New 485-x tax incentive would require (at Atlantic Yards) 25% "affordable" units for households averaging 60% of AMI (now $83,880 for 3 people, but will rise).
At 18 Sixth (Brooklyn Crossing), Life Time fitness center is open. Also coming around the corner: facial chain Glowbar.
Finally, a tenant for major corner space at 38 Sixth Avenue, at southeast corner of arena block: Heart of Chelsea Veterinary Hospital.
May 2024
At 535 Carlton, Studio Pilates is open. Last retail space, at demapped Pacific St., would border construction staging & ultimately "Pacific Park" plaza & corridor.
461 Dean tower finally getting a second (and final) retail tenant: juice bar Pure Green, adjacent to Barclays Center's Dean Street entrance.
Blasé Bruce Ratner forgets his past Atlantic Yards promises. As Ratner continues media interviews and establishes Early Detection (Cancer) Initiative, his career misleadingly framed as steady "progressive" path.
Flashback, 2012: Atlantic Yards flack claims retail changes equal railyard revamp. Today, the unfinished project leaves a "scar" that was supposedly gone.
 |
| Looking east to dog runs |
In 2022, the developer claimed, dubiously, the (now-lapsed) Quality of Life meetings fostered accountability. Where can the Pacific Park Conservancy be queried?
The Real Deal: "Embellishing the truth is second nature to many real estate developers."
Daily News gets a vague quote from Gov. Hochul re Atlantic Yards, cites "myriad complications," uses
 |
| Screenshot from Daily News shows stale photo |
Daily News editorializes, vaguely, "Nudge forward Atlantic Yards: Brooklyn housing plan must be completed." Renegotiate fines? Pay for platform?
What affordable housing graphics conceal--or reveal: a New York State chart on Atlantic Yards affordability only tracks categories; a new graphic shows the rising costs.
Real estate lawyer admits that allowing "affordable" units at 130% of Area Median Income was "a mistake." Last four Atlantic Yards towers had only 130% AMI.
As "affordable" rents rise with 2024 Area Median Income, a "low-income" 1-BR could cost $2,330! Now HPD warns that maximum rents may not be realistic.
So, those 130% AMI income-linked "affordable" units won't stay regulated forever, maybe just 35 years.
New York Liberty owners hope for billion-dollar team valuation. That bolsters the case for "additional rent" paid to public sector for using the (tax-exempt) Barclays Center. After filling the Barclays Center against Caitlin Clark & the Indiana Fever, Liberty will try again. Other home games are selling none/part of the Upper Deck.
Was Mikhail Prokhorov's profit when selling the Brooklyn Nets & arena company "only" $600 million? Even so, he's still the big Atlantic Yards winner, with the Tsais.
The amortization bonus: as major-league team values increase, owners deduct more. The ethereal concept also helps the Barclays Center bottom line. Might the tax-loss gravy train for sports team owners be stymied by new IRS compliance effort?
Suing Ticketmaster and Live Nation for "monopolizing" concert markets, Justice Department alleges threats to Barclays Center, which ended SeatGeek deal.
Barclays Center operator reports major rebound in ticket sales, which could (finally) lead to a modestly profitable year. Should that be credited to the Ticketmaster switch?
BSE Global, parent of the Brooklyn Nets and arena company, reports positive community impacts, with the help of sponsors
June 2024
Barclays Center crows, per Billboard, it was the world's top-grossing venue in April. (Thank Nicki Minaj and Bad Bunny?) In 2022, it ranked twelfth, in 2023, tenth.
The mantras of Atlantic Yards include, "It's a never-say-never project."
A quote about economic development: “That’s how you get [casino] projects done, right? You inflate the job prospects, you inflate the revenue.”
 |
| Arena loading dock on Dean Street |
With new Brooklyn office buildings struggling to fill space, that again suggests Site 5 project would be residential, not office.
The Barclays Center's unwise financial forecaster. Go-to consultant CSL in 2009 said the new arena would reap huge profits. Their own report refuted that. Philadelphia awaits.
As the Barclays Center promotes the WNBA's New York Liberty, synergy next door with Glowbar serving as Liberty's "Official Facial Studio."
At BSE Global, Marissa Shorenstein's a well-wired Chief External Affairs Officer. Also, she was appointed by Gov. Hochul to the NYS Gaming Commission. Can't hurt, right?
BSE Global news: Barclays (with no retail branches) becomes New York Liberty's official banking partner; new VP of Communications named.
Union Square Travel Agency, a legal cannabis business (headed by former New York State official overseeing Atlantic Yards), opens in Downtown Brooklyn, near Jay-Z's old stash spot.
In 2024 Forbes Global 2000, Greenland Holdings, parent of Greenland USA, continues drop, to #891 from #831. It was once #307. Annual loss: $1.6B.
Revising the Koch-Tsai deal: new reports say $5.8B total, including $5.3B for Brooklyn Nets + arena company; $688M from the Kochs, mainly to retire debt. The multiple, which is 14 times revenue, is astronomical.
 |
| From W.S. Rally |
As Brooklyn Nets’ value booms, a missed opportunity with the arena. My essay in Common Edge.
Why the Brooklyn Fanatics team store at the Barclays Center reaps profits: it's part of a monopoly.
Breakthrough? ESD anticipates new developer proposed for six foreclosed railyard sites, but no details yet about who, or contours of (likely) concessions requested.
At AY CDC, a curious motion to hasten tower progress at Site 5, catercorner to Barclays, omits scale but prompts talk of asking arena operator to pay for plaza.
Street co-naming block party June 29 honoring the late James Caldwell, former head of 77th Precinct Council and controversial Atlantic Yards CBA signatory BUILD.
The Brooklyn Nets trade Mikal Bridges, their best player but no cornerstone, to the New York Knicks for a draft haul, so they're poised to tank--and rebuild.
July 2024
The Real Deal: Related Companies, which built Hudson Yards, said to be developer interested in the six railyard sites. Related Chief Executive Jeff Blau says talks regarding Pacific Park "have a lot of moving parts," but "could be a great opportunity."
While B5 tower could qualify for 421-a extension, the all middle-income "affordable" option is off the table. But Option B still looks pretty good, compared to 485-x. Does the new 485-x tax break make railyard development sites more viable?
The Real Deal: Related Companies, which built Hudson Yards, said to be developer interested in the six railyard sites. Related Chief Executive Jeff Blau says talks regarding Pacific Park "have a lot of moving parts," but "could be a great opportunity."
While B5 tower could qualify for 421-a extension, the all middle-income "affordable" option is off the table. But Option B still looks pretty good, compared to 485-x. Does the new 485-x tax break make railyard development sites more viable?
“New York street fighter”: Former Forest City CEO MaryAnne Gilmartin gets the Real Deal hagiography. Not so much "due diligence."
Former ESD Atlantic Yards Director Tobi Jaiyesimi lands at lobbying powerhouse Kasirer, which represents Pacific Park developer. But she won't lobby on Atlantic Yards.
 |
| Double-parking on Atlantic Avenue |
Downtown Brooklyn Partnership claims (nah) city & state governments have already funded platform over LIRR railyard, claims $686 million (!) in arena public support.
Would Joe Tsai's slickest move be poaching Ticketmaster Plaza?
As Ticketmaster-sponsored New York Liberty summer camp uses truncated Ticketmaster Plaza, another reminder of plaza giveaway to BSE Global.
Greenland paid the MTA for Vanderbilt Yard development rights through June 2023. Now it's a mystery. Is all stalled until Related makes its bid?
Would Greenland develop Site 5 or sell development rights after new approvals? Well, they've sold (3.5 of) the last 4 sites. Why not Related? Or: Brodsky, TFC?
So, once-indie Brooklyn Magazine is now part of Tsai's BSE Global, which plans a larger media enterprise to champion/amplify Brooklyn.
Will "You Belong Here"/"We Belong Here" neon art (or marketing?) installation outside Barclays Center be extended past 2024? Could New York State leverage that neon art (or advertising?) installation to get tsai to pay for the plaza?
Greenland Holding's huge loss on Atlantic Yards/Pacific Park: end-of-2023 audit shows firm recognized $390 million impairment (loss of value).
In 2018 Pacific Park ownership "restructuring," did Greenland USA pay anything for Forest City's 25% share? The answer seems no, except for Modell's site.
Resolving "land litigation disputes" (re Site 5?), Forest City gave Greenland its shares in B4 tower & future Site 5 (jointly valued at $40.1M) & paid Greenland $18.2M.
August 2024
To rescue Atlantic Yards, developer sought to supersize project. Greenland USA aimed to add nearly 2,700 apartments in six railyard towers, plus Site 5 opposite arena. Could expansion plan recur with successor?
 |
| Top panel created for comparison with Greenland USA’s bottom panel, which has been adapted to portray Site 5 and to add text. |
Why did rescue plan run aground? Developer Greenland USA sought to supersize towers and gain extensions, but officials were wary. MTA negotiations stalled. Shanghai-based executive even flew to NYC for meeting.
Are Atlantic Yards changes (like a new developer and new deal) brewing? ESD schedules surprise meeting of advisory body.
Would community engagement process lead to new vision or just tinkering ? Why not hire, as proposed, third-party experts with the public interest in mind?
With meeting set for first-ever Executive Session, big questions about whether Atlantic Yards CDC can impose that restriction. At Executive Session, Atlantic Yards advisory group privately learns of... something.
Is the EB-5 loan middleman a Prohibited Person? If so, should Empire State Development have been dealing with him? Bad shorthand: "the lender" in EB-5 funding isn't the (middleman) regional center, but the immigrant investors.
With meeting set for first-ever Executive Session, big questions about whether Atlantic Yards CDC can impose that restriction. At Executive Session, Atlantic Yards advisory group privately learns of... something.
Is the EB-5 loan middleman a Prohibited Person? If so, should Empire State Development have been dealing with him? Bad shorthand: "the lender" in EB-5 funding isn't the (middleman) regional center, but the immigrant investors.
Also, the questionable EB-5 record of Related Companies. As an attorney representing investors argues, "And when the developer itself is put in charge of the EB-5 Fund, the developer is effectively both the borrower and the lender, so it has no incentive to act on behalf of the lenders who are Chinese investors."
How's Ticketmaster Plaza outside Barclays Center leased? State officials unsure of terms. But "temporary" plaza could be renegotiated, given arena value boost.
How's Ticketmaster Plaza outside Barclays Center leased? State officials unsure of terms. But "temporary" plaza could be renegotiated, given arena value boost.
 |
| Looking south at Site 5 |
So, are changes at Site 5, with supersized density, a "done deal"? What community engagement is coming? Well, it also would involve railyard sites.
What future Atlantic Yards "thing" will be assessed? That process depends on having a more fleshed-out plan, observed Arden Sokolow, Executive VP, Real Estate, of the parent ESD.A $5,483 "affordable" 2-BR? At 38 Sixth & 535 Carlton, has Avanath legally gamed rent stabilization,
violated an agreement, or something else? NYC HPD won't say.
A month later: after my article questioning Avanath's pursuit of $5,483 "affordable" 2-BRs at 38 Sixth & 535 Carlton, landlord now seeks legit rents, about $3,300, for such units.
After huge uptick in ticket sales, Barclays Center reports significant (but lesser) boost in net revenue, pointing to modest profits after years of losses.
Welcome to the "Pacific Park Campus": School Construction Authority posts new video, plus photos of artwork at new building.
After huge uptick in ticket sales, Barclays Center reports significant (but lesser) boost in net revenue, pointing to modest profits after years of losses.
Welcome to the "Pacific Park Campus": School Construction Authority posts new video, plus photos of artwork at new building.
The Times steps aside, locally, again. No more endorsements in New York races.
Academic Andrew Zimbalist now says studies for sports venue proponents are "elaborate press releases based upon inappropriate methodology & unrealistic assumptions.” Like his consultant's report in Brooklyn?
WSJ: "Related Closes In on Deal to Rescue" Atlantic Yards/Pacific Park. That didn't quite happen on schedule.
Greenland Holding Group, parent of Atlantic Yards developer, plunges to #291 (from #205) in Fortune Global 500. Revenues down, losses up. Stock falls.
September 2024
September 2024
"Build More Homes for Families," urges developer and former Deputy Mayor Glen. Sure, wasn't that the (unenforceable) Atlantic Yards plan?
Consultant's dubious Philly arena forecast relies on New York-area venue fictions. CSL ignores competing arenas, MSG renovation, new-venue bump, and post-pandemic surge.
Barclays Center's unimpressive ranking of 25th in Pollstar's 2023 ticket sales list may help explain the return to Ticketmaster.
What happened to the Pacific Park Brooklyn web site, and social media? For now, dead or sleeping.
 |
| Screenshot |
Opening Sept. 14 in base of 595 Dean West Tower, Nin Hao, Fujianese "seafood-driven fare." Still waiting on SIMÒ Pizza in East Tower.
As New York Liberty's popularity increases, fans see aggressive price increases for 2025 tickets. Some are outraged. (It's not just "capitalism.")
Busier Barclays Center finally reports a moderate profit, thanks to big boost in event, ticketing, and concession revenues. But what about $51M in capital expenses?
Does Barclays offer lessons for Philadelphia arena planners? Yes, but the Community Impact Analysis relies on flawed articles and flattering photos. It omits the arena's expanded promotional canvas and the story of the green roof.
Does Barclays offer lessons for Philadelphia arena planners? Yes, but the Community Impact Analysis relies on flawed articles and flattering photos. It omits the arena's expanded promotional canvas and the story of the green roof.
 |
| Highlight added |
How did Fortress Investment Group, mainly owned by Abu Dhabi-based wealth fund, get a piece of Atlantic Yards/Pacific Park? Well, it involves EB-5, but there's a lot unknown.
State reports show Related Companies first started lobbying on Atlantic Yards in May/June, ramped up efforts in July/August.
Joe Tsai's not accused of taking bribes to serve the Chinese regime. But how different is his public posture on "contentious issues" from some of those charged?
While long-running lawsuit versus landlord (and developer) percolates, McDonald's at corner of Vanderbilt & Atlantic invests $60K on interior renovation.
Could New York state leverage naming rights to get ArenaCo owners Tsai (& Koch) to pay? Empire State Development could end the Barclays Center sponsorship. (Shh--the bank's a felon.) It might even be a win-win.
Some EB-5 investors furious about failure to get their $500K repaid now sued for harassing Related CEO. But how ethical is Related's business practice?
Nets owner BSE Global proposes using empty ex-Modell's store across from arena for youth basketball programs (free? $645/week?), until new towers built.
While long-running lawsuit versus landlord (and developer) percolates, McDonald's at corner of Vanderbilt & Atlantic invests $60K on interior renovation.
Could New York state leverage naming rights to get ArenaCo owners Tsai (& Koch) to pay? Empire State Development could end the Barclays Center sponsorship. (Shh--the bank's a felon.) It might even be a win-win.
 |
| Plan for Modell's |
Nets owner BSE Global proposes using empty ex-Modell's store across from arena for youth basketball programs (free? $645/week?), until new towers built.
Brooklyn Nets announce new jersey patch partner, travel platform GetYourGuide. (No sum stated.) New local tourism synergy and even ticket sales.
Now open at 461 Dean: juice bar Pure Green, which also sells smoothies and bowls. The opening is more than seven years (!) after the building opened to residential tenants.
October 2024
Atlantic Yards meeting: as Related moves toward joint venture, who's obligated to build the affordable housing? What entities would be in project agreements?
With giant project proposed for Site 5, across from arena, are changes locked in? Seems so, despite denials. Unmentioned: unprecedented density.
A couple of Atlantic Yards-adjacent bits in the Eric Adams controversies: not only is mayor indicted for bribery, Winnie Greco, Mayoral Aide Under Investigation, Steered Adams’ Relations With China for Almost a Decade, The City and Documented reported. She was clearly ethically dubious a decade ago.
The arena company benefits from the temporary plaza, likely more than with the unbuilt Urban Room. New York State seems ready to make it permanent, with no reciprocity. Why not some public gain?
As case regarding McDonald's and its landlord at 840 Atlantic (at Vanderbilt) moves closer to trial, pre-trial rulings lean toward tenant.
Will "Pacific Park" be renamed? Housing surge would increase open space deficit. Back to "Atlantic Yards"? Nah. "Another ocean"? Nope. How about "Brooklyn Central"? You read it here first. But the park space per capita would be diminished
 |
| Annotated unofficial mash-up |
80 DeKalb, first Brooklyn residential tower built by Forest City, sold yet again.
After 19 months, state to resume Quality of Life meetings Nov. 6 to hear neighborhood concerns about the project & arena. The Pacific Park Conservancy has a new phone number.
Welcome to "The Brooklyn Trio"? In architecture firm's presentation, developer Greenland lobbied hard to build bigger at Site 5 opposite arena. New York State signed on. Tower images still redacted.
 |
| The Site 5 tower is redacted |
New York Liberty win WNBA title! Among the "public people" cheering are Comptroller Brad Lander and Attorney General Letitia James.
As Liberty await a parade and a party, NYC claims playoffs generated $18.3M+ of "economic impact." That's murky.
That primarily benefits the team/arena owner. The Liberty's parade draws enthusiastic fans and earns front-page coverage, while rival politicians bask in a championship.
BSE Global's Brooklyn "ecosystem" expansion plan: hotel (at Site 5?), conference center, and new Brooklyn Media venture, including Brooklyn Magazine.
As Barclays Center debuts new (sponsored) clubs replacing suites, parent BSE Global says they're part of $100 million revamp, including new scoreboard.
Though Related CEO drops claim against seven named (aggrieved) EB-5 investors, harassment said to continue, so lawsuit amended to target various "John Does." The bizarre saga continues.
BrooklynSpeaks tells elected officials: ensure deeply affordable housing, have arena operator fund monitors. Also: get financial analysis of proposed effort to supersize project. But will community coalition give carte blanche on scale?
November 2024
Now open on Dean Street, SIMÒ pizza.
Delays undermine promises of affordable housing in Brooklyn. “Whatever the pace may be for the delivery” of such benefits, a state court judge wrote, “the nature of those benefits remains the same.” Not so.
Adweek reports: Brooklyn Magazine relaunches as BKMag after BSE Global buys it, plans to emphasize guides and short-form videos. Editor-in-chief gone after 7 months.
At belated online meeting about project issues, low turnout & big questions bypassed. Acknowledging noise complaints, Pacific Park Conservancy reduces dog run hours. Dog owners, neighbors both frustrated. Can sound be tamped down?
At meeting, arena rep outlines plans for kids' hoops at Modell's, offers reassuring rhetoric about arena operations (& vendors), leans into the phrasing "Urban Experience."
Who controls the arena plaza? New York State's explanation left something out. Complex transactions involving the (unbuilt) flagship tower and the Barclays Center operator were envisioned. Shouldn't BSE Global pay to gain a permanent plaza?
As Liberty await a parade and a party, NYC claims playoffs generated $18.3M+ of "economic impact." That's murky.
That primarily benefits the team/arena owner. The Liberty's parade draws enthusiastic fans and earns front-page coverage, while rival politicians bask in a championship.
BSE Global's Brooklyn "ecosystem" expansion plan: hotel (at Site 5?), conference center, and new Brooklyn Media venture, including Brooklyn Magazine.
As Barclays Center debuts new (sponsored) clubs replacing suites, parent BSE Global says they're part of $100 million revamp, including new scoreboard.
Though Related CEO drops claim against seven named (aggrieved) EB-5 investors, harassment said to continue, so lawsuit amended to target various "John Does." The bizarre saga continues.
BrooklynSpeaks tells elected officials: ensure deeply affordable housing, have arena operator fund monitors. Also: get financial analysis of proposed effort to supersize project. But will community coalition give carte blanche on scale?
November 2024
Now open on Dean Street, SIMÒ pizza.
Delays undermine promises of affordable housing in Brooklyn. “Whatever the pace may be for the delivery” of such benefits, a state court judge wrote, “the nature of those benefits remains the same.” Not so.
Adweek reports: Brooklyn Magazine relaunches as BKMag after BSE Global buys it, plans to emphasize guides and short-form videos. Editor-in-chief gone after 7 months.
At belated online meeting about project issues, low turnout & big questions bypassed. Acknowledging noise complaints, Pacific Park Conservancy reduces dog run hours. Dog owners, neighbors both frustrated. Can sound be tamped down?
At meeting, arena rep outlines plans for kids' hoops at Modell's, offers reassuring rhetoric about arena operations (& vendors), leans into the phrasing "Urban Experience."
Who controls the arena plaza? New York State's explanation left something out. Complex transactions involving the (unbuilt) flagship tower and the Barclays Center operator were envisioned. Shouldn't BSE Global pay to gain a permanent plaza?
 |
| This image deserves caveats |
Forbes says value of Brooklyn Nets boomed 25% in a year, to $4.8B, despite limited profits. Second-largest rise in NBA. Credit the Koch investment.
Related's new joint venture said to be about to qualify as "permitted developer" to build on six railyard sites. (It hasn't happened yet.) State officials claim project contours not under negotiation.
State authority plans "Community Engagement" regarding six towers to be built on platform sites. Won't developer Related's lobbying establish parameters?
BSE Global buys landmarked retail space at base of Williamsburgh Bank Tower near arena. Will this space be a new perk for high-rollers?
Is BSE Global's Brooklyn Wine Club for you? Well, it starts at $1,500 a year (plus $250 initiation). Also: look to Williamsburgh bank building for new marketplace?
 |
| Photo: Tracy Collins |
Flashback: "Atlantic Yards Is ___"? The gnomic question persists.
As Site 5 Interim Lease made public, timing questions, coordinated spin, & confirmation of future P.C. Richard store in retail space at planned giant development
As Site 5 Interim Lease made public, timing questions, coordinated spin, & confirmation of future P.C. Richard store in retail space at planned giant development
Stamp of approval: New York magazine gift guide recommends Lady Liberty Tee, featuring mascot Ellie the Elephant. As ticket prices for some Liberty games rise, the team earns two mentions in New York's "Reasons to Love New York."
December 2024
Fixing the housing crisis? Atlantic Yards example shows that developers gaining subsidies and zoning benefits don't deserve slack, says Times commenter.
A Q&A with Gabrielle Bendiner-Viani, whose new book, The Cities We Need: Essential Stories of Everyday Places, in part chronicles Prospect Heights.
 |
| A bodega replaced by a craft beer bar; from Intersection | Prospect Heights; photos by Gabrielle Bendiner-Viani |
In recent quarterly report, Barclays Center operating company discloses 18% drop in cash receipts. Ticket sales down, but still dwarf pre-Ticketmaster numbers.
Is 595 Dean a "Successful Project"? To one real-estate journalist, all looks fine (and supplies fodder to dis Atlantic Yards opponents). But there's reason for doubt. Also, those middle-income "affordable" units at 595 Dean were open to a tiny fraction of New York City renter households.
 |
| Pacific Street and Carlton Avenue, access managed by the Shomrim safety patrol |
Moody's in 2024 maintained rating on Greenland as "highly speculative, or near default.”
Unannounced Barclays Center event for Hasidic group draws elected officials. NYPD lets volunteer Shomrim group (!) cordon off streets. Scofflaw vehicles block sidewalks, paths.
Yes, a quality-of-life enforcement unit around the Barclays Center is needed, per BrooklynSpeaks. But how could it work, when the political powers don't care?
 |
| 38 Sixth |
So, what happened to the promised Times Plaza open space? It's been on hold for seven years.
"100% Affordable" 38 Sixth sued by NYC Housing (over hot water, settled), then by Tenants' Association, citing security issues, roaches, and more. Tenants gain "significant victory."
"100% Affordable" 38 Sixth sued by NYC Housing (over hot water, settled), then by Tenants' Association, citing security issues, roaches, and more. Tenants gain "significant victory."
It's a business: seven weeks after Brooklyn Nets debut an extensive video profile of Dennis Schröder, he gets traded.
While New York State's supposed to get a six-month look-ahead, no document supplied because no construction planned January-June 2025. Might there be more to it?
Transparency fail: why, in a June 2024 discussion about Site 5, did Empire State Development officials not disclose changes they'd already backed in 2021?
Did the belated documentation disclosed by Empire State Development for the EB-5 loans confirm money was spent on Permitted Uses? Not quite.
Do Joe Tsai and Clara Wu Tsai own the Barclays Center? No. The common, erroneous shorthand, lately in the New York Times, obscures the governmental largesse that has helped fuel huge financial gains.
Has the Chick-fil-A chaos on Flatbush Avenue been tamed? Seems like progress, with alternative location on Atlantic at Clinton.
Has the Chick-fil-A chaos on Flatbush Avenue been tamed? Seems like progress, with alternative location on Atlantic at Clinton.
 |
| Nets ticket holders line, Dec. 27, 2024 |
In its most recent IRS filing, Pacific Park Conservancy shows cash on hand, new spending on maintenance, and key vacancies on board. Is there money for dog run revamp?
Comments
Post a Comment