Atlantic Yards/Pacific Park Report

From Brookfield web site, 2023 If you search "Brooklyn" on the website for Brookfield Properties, the results , at right, deliver nine properties, including several at Brooklyn Commons, formerly known as MetroTech. Absent, however, is any part of Pacific Park Brooklyn. That's been the case for a while, though I'm not sure how long, which raises the question: is Brookfield still involved? Flashback, 2018 In December 2018, after Brookfield Properties had absorbed Forest City Realty Trust, parent of the original Atlantic Yards/Pacific Park developer, I wrote  that Brookfield seemed a little overoptimistic about the project, stating, prematurely, that, "Multiple residential building components are under construction." As of then, Brookfield owned 30% of two rental towels, the "100% affordable" 535 Carlton and 38 Sixth, plus a 30% share of the remaining unsold condo units in 550 Vanderbilt, all built as part of a 30/70 joint venture between original dev...

Now that Brookfield Properties has owned the portfolio it acquired from Forest City Realty Trust/Forest City New York for a few years, since the late 2018 takeover , it's changing things up, renaming MetroTech--named for a once-planned but not executed technology park-- Brooklyn Commons , an anodyne name for back office space. (Similarly anodyne, Brooklyn Crossing, the largest building so far at Atlantic Yards/Pacific Park.) Note that, according to the official map, the buildings are still named "MetroTech Center," plus a numeral. That might be hard to change.  (Another question, noted below: what happens to the Jay St MetroTech subway stop name?) And while they can call the central green space, formerly MetroTech Commons, Brooklyn Commons Park, it's still privately operated and controlled, able to curtail some activities that would be allowed in a city park. Brookfield Properties commences $50M redevelopment of Brooklyn Commons , REW told us 2/8/22, relying on a Broo...

The former Forest City Ratner empire in New York City is being dismantled by Brookfield, which bought out parent Forest City Realty Trust at the end of 2018. Brookfield puts MetroTech assets on the market , the Real Deal reported 11/3/21: The investment giant aims to get up to $300 million for its leasehold interest at 9 and 11 MetroTech Center, according to Green Street’s Real Estate Alert. The leasehold is the right to own the building. New York City owns the land underneath the buildings and is also a tenant in them. If that lease has over 75 years, it had to have been over 100 years--a nice deal from the start. The article notes that Brookfield in August sold another MetroTech property, 12 MetroTech Center And in Manhattan Also, the Real Deal reported 11/3/21, Lower Manhattan’s Gehry apartment tower for sale asking $850M , with the sellers Brookfield Property Partners and Nuveen, the real estate arm of TIAA: The owners of the 76-story highrise are seeking north of $850 million...

In an ad on page 21 of the Sept. 14 Commercial Observer , Brookfield--which absorbed Forest City Realty Trust in 2018 --touts office space "at the Center of Brooklyn's most Desirable Neighborhoods." Those towers, originally developed by Forest City Ratner/Forest City New York, include 1 Pierrepont Plaza at the edge of Downtown Brooklyn and Brooklyn Heights and 2 Hanson Place, rising over the Atlantic Terminal mall. And there's a lot of space available. (The retail at the mall is owned by Madison International now.) Below the images of those two towers, as well as one at Forest City-developed MetroTech, is a statement about "Reimagining Real Estate": At Brookfield Properties, we look behind what is to see what could be. We work closely with communities, tenants, and residents to understand what makes them unique. We build and manage to standards of quality and design that enhance entire neighborhoods, elevate entire cities, and raise the bar for real estate e...

L&L MAG vs. a Silverstein Properties/Brookfield Properties partnership Brookfield absorbed Forest City Realty Trust, whose NY office (FC NY) was headed by L&L MAG's MaryAnne Gilmartin So first rivalry AFAIK to surface (article by @dangeiger79 ) https://t.co/ibWhZ5CjLH — Norman Oder (@AYReport) October 26, 2019

There's not a ton of detail/insight in public statements by the buyer of Forest City Realty Trust before the 12/7/18 closing of the purchase , but, for the record, here's a recap, from Brookfield, plus last week's post-closing statements, which were even more optimistic. The key phrase is "we look forward to creating further value in this business by leveraging our unique mixed-use real estate and placemaking expertise with the portfolio." The unspoken addendum may be: "we have deeper pockets and more patience." Emphases added. 8/1/18, Brookfield Property Partners Q2  Letter to Unitholders : New Investments Earlier this week, a Brookfield real estate investment fund entered into an agreement with Forest City Realty Trust (NYSE: FCEA) – an $11.4 billion diversified U.S. REIT – to acquire all of the shares of Forest City for $25.35/share. BPY is a 25% limited partnership investor in this fund. Forest City has created a high-quality portfolio of op...

Here's my 2019 preview . As I like to say, there's usually a surprise every year with Atlantic Yards/Pacific Park. In 2018, there was more than one, and the first--and largest--came in January, as the project continued a curious stall, with no new building starting since mid-2015. (Infrastructure work has continued.) Forest City New York CEO Maryanne Gilmartin, Bruce Ratner's designated successor, saw the writing on the wall and/or followed her dream, leaving (with four lieutenants) to co-found a new firm, L&L MAG. That was coupled with the the decision, after a year of negotiations, by Forest City to pull back from Pacific Park and further lower its risk, selling all but 5% (of its previous 30% share going forward) to Greenland USA, which fully controls Greenland Forest City Partners. Cuomo boosts Belmont Some other surprises, though smaller, were significant. The New York Islanders and the Barclays Center mutually opted out of their purported 25-year deal ...