Atlantic Yards/Pacific Park Report

Former Brooklyn Assemblyman Roger Green, who served from 1981-2007 and represented the proposed Atlantic Yards footprint when the project was announced and let the push for a Community Benefits Agreement (CBA), is back in the news. As NY 1 put it Dec. 16,  Former Brooklyn assemblyman urges Mamdani to address displacement of Black residents . I'll describe Green's recent proposals below, but first note that, while suggesting various solutions, he didn't mention the promise, albeit fuzzy , of 600 to 1,000 affordable for-sale units in the Atlantic Yards project, on or off site, later updated to a promise of 200 on site . That requires subsidies. Given that the promise was incorporated into the CBA, I wouldn't be surprised if Green revives it. The issue's back At a meeting earlier this month of the Atlantic Yards Community Development Corporation (AY CDC), Ismene Speliotis, the key architect of the Atlantic Yards Housing Memorandum of Understanding (MOU) that origin...

Penthouse East (PHE), the last unsold apartment at 550 Vanderbilt, the only condo building in Atlantic Yards/Pacific Park, has finally sold, for $4,550,000 , more than eight years after the building began pre-sales .  The sale was earlier  reported by Marketproof. From  StreetEasy While the StreetEasy suggests the 3-BR, 3.5-BA unit sold for 4.21% below the listed price of $4,750,000, that's not fully accurate, since the price tag was cut multiple times, from the $5,805,000 in the June 2015 Offering Plan.  StreetEasy notes that the unit was listed for $5,000,000 in October 2019, then cut to $4,995,000 in May 2022 and $4,750,000 in February 2023. The selling agent was SERHANT, the successor to Nest Seekers International. Also, the buyer got nearly $126,709 in credits, concessions, and other payments made by the seller, an affiliate of Greenland Forest City Partners, the joint venture that built the building. A footnote in the deed states that the sponsor rece...

As I wrote last May, with all but one of the 278 units (which include a super's apartment)  finally sold , the developers of 17-story 550 Vanderbilt (B11), the only condo building so far in the Atlantic Yards/Pacific Park project, finally put Penthouse East back up for sale. From StreetEasy The price then was $4,995,000, for 7 rooms, including 3 beds and 3.5 baths. That represented a tiny, marketing change from the 2019 listing of $5,000,000, but a 14% cut from the original price of $5,805,000. Last month, as shown in the screenshot at right, the price was lowered to $4,750,000, a 4.9% cut from the previous listing and an 18.2% reduction from the original price. The unit was built by Greenland Forest City Partners, with Greenland USA having a 70% share in the building. Later, after the joint venture built three towers, Greenland bought out all but 5% of original developer Forest City Ratner's interest in the remaining project going forward.  Looking at the numb...

Last year, I wrote about what I called "Atlantic Yards and the problem of time," given that the steady increase in Area Median Income (AMI), which is calculated regionally and used to set levels of affordability, meant that a "low-income" two-bedroom apartment, at 50% of AMI, could rent for $1,500. In fact, the AMI levels have risen so much that developers of Brooklyn Crossing (B4) and Plank Road (B15) have not sought the maximum rents available for middle-income "affordable" units at 130% of AMI, recognizing they must compete with the market. The cost of delay also affects the promised 200 on-site "affordable" condos, about which I wrote this week  for CommonEdge, noting the failure to guarantee such a promise, which would instead be contingent on subsidies. I should have pointed out that, even if such units were built, they likely would be aimed for a different, wealthier cohort, given the steady rise in AMI. When incoming Assemblymember Hak...

I have an essay in CommonEdge today,  How Atlantic Yards Failed to Deliver Affordable Homeownership (With a Hakeem Jeffries Cameo) . From the lead: U.S. House of Representatives Minority Leader Hakeem Jeffries’ inaugural address to colleagues in the early morning hours of Saturday, January 7, showed that the Brooklyn politician, the Democrats’ first Black leader in the House, should be a public fixture for years. While commentators hailed Jeffries’ tour-de-force A–Z passage contrasting Democrats and Republicans, what struck me most occurred in the last third of the speech, when Jeffries stated , “So on this first day, let us commit to the American Dream … if you work hard and play by the rules, you should be able to provide a comfortable living for yourself and for your family, educate your children, purchase a home, and one day retire with grace and dignity.” An unsurprising list? Well, the reference to “purchase a home” reminded me of one of Jeffries’ first political victories, ...

With all but one of the 278 units (which include a super's apartment) finally sold , the developers of 550 Vanderbilt (B11), the only condo building so far in the Atlantic Yards/Pacific Park project, are putting Penthouse East back up for sale. The price: $4,995,000, for 7 rooms, including 3 beds and 3.5 baths. The StreetEasy listing indicates that it had been listed 10/2/19 for $5,000,000, then taken off the market less than six months later. So that tiny price change is just for marketing. However, as I wrote last December when citing the sales of the first of the three penthouses, this unit was initially marketed for $5,805,000. So that's a significant cut in the sticker price. The unit was built by Greenland Forest City Partners, with Greenland USA having a 70% share in the building. Later, after the joint venture built three towers, Greenland bought out all but 5% of Forest City's interest in the project going forward. A huge tax break Notice that monthly taxes...

Nearly seven years after the 550 Vanderbilt condo building launched pre-sales for the 277 apartments (plus a super's unit), developer Greenland Forest City Partners is nearly at a sellthrough, thanks to the sale of the most expensive listed apartment plus one of the other two remaining units. The second of three penthouses, Penthouse South , has sold for $6.7 million, a 13.2% discount off the $7,715,000 asking price/ offering price . (The first penthouse to sell, Penthouse West, sold for a 14.7% discount, as I reported .) The sale, with mention of the list price but not the contract, was cited in the 1/7/22 Marketproof column in amNY. It was then updated with the closing price in the 4/7/22 Marketproof column . The buyer of Penthouse South, by the way, is already an owner in the building, and is now selling Unit 1619 for $2,675,000, after buying it in May 2019 for $2,370,288. Another unit sells Subsequently, Unit 1601, a two-bedroom once offered at $2.33 million, has now,  acco...

With the Affordable New York (aka 421-a) expiring this year as of June 15, that means that any new Atlantic Yards/Pacific Park building must launch by then to take advantage of those provisions, which provide tax abatements for buildings that include 30% "affordable" middle-income units, such as in Plank Road (B15) and Brooklyn Crossing (B4). (That's the most common configuration, and most advantageous to developers, though configurations with greater affordability are possible.) That also means that future towers must be planned with recognition of the financial considerations from the replacement for Affordable New York, one that's been under discussion for a while. Well, this week, we learned what Gov. Kathy Hochul wants: reform, without offending the Real Estate Board of New York (REBNY), focusing on "deeper affordability," a recognition that the middle-income provision was way too generous.  As I  wrote  last March for Bklyner: In its recent fair-hous...

Well, 550 Vanderbilt --the only condo building in Atlantic Yards/Pacific Park--is getting closer to a sell-through, with a $5.85 million sale of its second most expensive unit, the first of three penthouses to find a buyer.  That leaves two more penthouses, plus another large apartment, to sell out the 278-unit building, which began sales in 2015 and opened two years later. While PHW may seem to have sold for just 2.4% off the $5.995 million listing price, as suggested in the screenshot from StreetEasy, a look at the most recent amendment to the offering plan (below right), shows that the original offering price was $6.86 million. So the sale price represents a 14.7% discount. Other units Note that PHS was once listed at $7.715 million, the offering price, but has been more recently been put up for rent. PHE was once listed at $5 million, a 13.9% discount off the $5.805 million offering price, but has more recently been put up for rent. As shown in the screenshot, the 19th Amend...

This is the second of four articles on the 11/17/20 Atlantic Yards/Pacific Park Quality of Life meeting, held on Zoom by Empire State Development (ESD), the state authority that oversees/shepherds the project. The first focused on after-hours construction. The third concerned local questions. The fourth concerned the Barclays Center. Some of the big-picture questions about the project got, unsurprisingly, no real answers, though one additional clue emerged. We got no update on the plan to meet the requirement of 2,250 affordable housing units by May 31, 2025, which involves 877 units in at least three new buildings. However, Scott Solish of Greenland USA said the developer--which owns nearly all of Greenland Forest City Partners--has not raised the possibility of an extension or exemption with ESD. (I'd written that I wouldn't bet against such a move.) The platform and its towers   Regarding the platform over the first block of the Vanderbilt Yard, Solish said there was n...

I must say that I find this  CityRealty page  (screenshot at right) for the 550 Vanderbilt condo building a wee bit slanted.  Consider the list of pros and cons--and put aside the coronavirus crisis, which probably makes some people wary of elevators. The Pros include: near public transportation (sure, though no-parking might now be an issue) "near the Brooklyn Academy of Music" (not quite) near Barclays Center (more or less) "adjacent to new park" (not for many years, and open space isn't quite a park) part of a huge project with more than 6,400 apartments (the proofreading on that needs work, but that total is by no means imminent) The listing text, though not the Pros, mentions the key pro: the very advantageous 25-year 421-a tax abatement.  Unmentioned, oddly enough, is the fact that Vanderbilt Avenue is a vibrant shopping street, with many food and beverage options, and is now an open street. What are the Cons? The Cons, in toto, consist of "Co...

In describing a marketer's effort to rebrand a maisonette at the 550 Vanderbilt condo tower with the boutique address of 655 Dean Street, I yesterday noted that, by my count, 11 of 278 units remain unsold. It hasn't been easy to move the last units--as I wrote, as of a flash sale in December 2018 , there were 32 apartments left, mostly more expensive ones. In 2019, however, pricing was further pressured by a new mansion tax . Before the coronavirus pandemic upended things, making it even harder to sell units, I noticed in early March an advertisement on a trash can in Downtown Brooklyn, at Court and Schermerhorn streets, aiming to sell the remaining units at 550 Vanderbilt. "Last 5% of inventory with New Pricing!" the advertisement states. "25 year tax abatement."  The "last 5% of inventory" implied that 14 of 277 units were still available--and that conformed to the statistics I'd been keeping. (The 278th unit is for the super; that sal...

There's got to be a catch: a one-bedroom apartment in a luxury condo building renting for $1,380, which is well below market rate for even a creaky building in a less-than-great neighborhood?  Well, for the past week, there's been a direct-from-owner ad for a one-bedroom at 550 Vanderbilt claiming to seek rent for $1,380. And it's on Craiglist , not exactly the source of highest-quality listings. (Is it a typo? A roommate situation?) Even at $2,380 it would be well below market, since the least expensive one-bedroom available, according to StreetEasy , is $3,100 per month. The unit, purported to be 1,026 square feet, is accompanied by copy cribbed from previous promotional language for the building, for example recounting amenities--fitness center, children's playroom--that may not be available during the pandemic. Oh, and there is no attached garage, despite that claim.

Not that surprising that a Member of Congress still gets stopped. See Sen. Tim Scott, etc. https://t.co/UnregWscA2 (I was stopped 3-4 times in early 1990s. Not since, tho.) — Norman Oder (@AYReport) July 27, 2020 Rep. Jeffries as incoming Assemblymember helped negotiate a promise of 200 below-market for-sale units (condos), rather than affordable rentals, in #AtlanticYards @pacificparkbk https://t.co/gDvhKk1nFO But that plan seems dead, w/no enforceability (& no push from legislators) — Norman Oder (@AYReport) July 27, 2020 Well, it was also a matter of the drafting language in the project documents signed by the developer and @EmpireStateDev — Norman Oder (@AYReport) July 28, 2020

Official rendering 561 Pacific Street Wraps Construction In Boerum Hill, Brooklyn  New York YIMBY reported yesterday, citing work "wrapping up" on the 12-story residential building at Fourth Avenue and Pacific Street, with 63 market-rate units. Whether it will be finished is another question, since the site is not considered essential construction .  The site is essentially across the street from Site 5, currently home to Modell's and P.C. Richard, but slated--someday--for a much larger project, the largest structure within Atlantic Yards/Pacific Park. Old Atlantic Yards hands might recall 561 Pacific as replacing the historic Church of the Redeemer . According to the 561Pacific web site, studios start at $725,000, one-bedrooms at $875,000, two-bedrooms at $1,425,000, and three-bedrooms at $2,575,000. The common charges are mentioned, but not the taxes.

The Real Deal on 4/2/20 published  What the $2 trillion stimulus does for real estate . I'll try to distill a few highlights that should have resonance for Atlantic Yards/Pacific Park. Late payments? Landlords get no direct relief, but individuals (earning up to $75,000) gaining a $1,200 check and those receiving unemployment insurance--which may take a while to get processed--will get some help to pay their bills. Bottom line: some people in many buildings, including the four Atlantic Yards/Pacific Park towers, will have trouble paying rent or possibly, in the case of the condos at 550 Vanderbilt, their mortgages/maintenance payments (though presumably they have more of a cushion) Borrowers from Fannie Mae and Freddie Mac get 90 days of forbearance if they don't evict renters and--this wasn't addressed in an article aimed at federal/national policy--those in New York have a three-month moratorium on evictions. Still, that seems to simply postpone the inevitable, wh...

I had to twice read  The Decade Dominated by the Ultraluxury Condo , a New York Times Sunday Real Estate section cover story (1/12/20) published online today, to understand what it was really saying about Brooklyn. Could it be that, as shown in the screenshot at right, Downtown Brooklyn had only 1,574 condo units built between 2009 and 2019, fewer than not only Williamsburg but also Bedford-Stuyvesant? Not unlikely, I guess, as long as we're talking about for-sale condos. Downtown Brooklyn, as detailed in multiple reports, had far more rental units, especially if the starting point is moved back to the 2004 rezoning. For example, as cited in a February 2016 report from Brooklyn Borough President Eric Adams's office, In terms of raw numbers of housing units, it was estimated that 979 projected units of housing would be built over the course of a decade, but the reality is that over 11,000 housing units have been developed or are in the pipeline. According to a 2019 re...

New York City Apartment Prices Hit Four-Year Low , the Wall Street Journal reported 9/30/19: Manhattan apartment sales tumbled during the third quarter and prices fell to their lowest level in four years, a Wall Street Journal analysis showed. Much, but not all, of the decline was triggered by a higher state transfer tax on luxury Manhattan real estate that took effect in July, brokers and market analysts said. While the median price of a Manhattan apartment in the second quarter rose 19.3%  to nearly $1.4 million, it dropped to just over $1 million, a reference to the tax-driven sale clusters. According to StreetEasy : For fiscal year 2020, the statewide mansion tax will remain at 1 percent for property purchased for $1 million or more. For properties in New York City, however, the new mansion tax will rise incrementally with purchase prices of $2 million or more, capping out at a total of 3.90 percent for properties sold at $25 million or above. That figure includes the 1...