Atlantic Yards/Pacific Park Report

From the New York Times yesterday,  Mayor de Blasio’s Political Standing Improves After Trump Win, but Perils Remain : “We’re still waiting to see whether a Goldman Sachs housing agenda continues at City Hall,” said Jonathan Westin of the advocacy group New York Communities for Change, referring to the city’s deputy mayor for housing and economic development, Alicia Glen, who is a former executive at the financial company. “Or whether this populist uprising of Trump and others is going to spur something different.” Mr. Westin criticized the mayor for counting as affordable a large number of units built during his administration that are too expensive for many of the city’s poorest. “The policies of moderation are failing us,” he said. “I think there’s space for the mayor to move aggressively to the left. If he doesn’t, there’s space on the left for someone to jump in.” Westin's right, except he and his organization have a notable blind spot when it comes to Atlantic Yards/Pacifi...

The New Shapes of New York  declares the Times today, in a cover article in the Metropolitan section. From Matt A.V. Chaban's introduction: Today, apart from the Empire State or Chrysler Building, there are few icons of the skyline. The buildings outlined above, however, may someday be worthy of appearing in a Times Square souvenir snow globe. These are the projects that have captured the imagination of more than a dozen shapers and observers of the city consulted by The New York Times for their perspective on the new standouts. You may not recognize these silhouettes, but in time, you will. The Barclays Center From the Times: The home of the Nets and Islanders was built across the street from Robert Moses’ unrealized Dodgers stadium, though the arena was almost unrealized, too, after years of lawsuits over the use of eminent domain. “ Barclays Center  has become one of the most important new public spaces and landmarks in the city, part of a larger narrative of the ...

So, is Greenland losing $700 million on Atlantic Yards/Pacific Park? Despite the headlines, there's no evidence. The web site  Mingtiandi , "the independent source for Asia real estate intelligence," on 11/8/16 published  TRAIL OF FAILS: $1 BIL WRITE-DOWN ON BROOKLYN PROJECT LATEST OF GREENLAND’S OVERSEAS GAFFES . Now, there is evidence that the Greenland Group's out-of-China investments are not going as planned, but that headline isn't justified. From the article: Just last Thursday the Shanghai-based firm’s US partner revealed a potential $1 billion loss on its Pacific Park joint venture with Greenland in New York. ...Among the highest profile of Greenland’s overseas projects is its joint venture with American real estate developer Bruce Ratner’s Forest City on the $5 billion Pacific Park complex. Formerly known as Atlantic Yards, Greenland chairman Zhang Yuliang grabbed a 70 percent stake in the development as the company’s second foray into the US m...

Screenshot of Forest City Realty Trust from Yahoo Finance Now that the stock price of Forest City Realty Trust has plummeted in the wake of Pacific Park Brooklyn losses, and one investment advisor (Citigroup) has downgraded  the stock from "buy" to "neutral," what next? This may renew the push by activist investors to change the company's unusual dual-class stock structure, which is blamed for a stock price that trails the underlying value of company assets. That A/B structure gives controlling power to the extended family--relatives of the founding Cleveland-based Ratners--though they own only a fraction of total shares. See screenshot below. From Forest City Realty Trust Investor FAQ Starting the push For years that A/B structure was not highlighted as a drag on the company's value. More recently, one "activist investor" firm, hoping to spur a rise in stock price (and thus boost its investment), has argued forcefully that, not o...

I covered the 11/14/16 meeting of the Atlantic Yards Community Development Corporation (AY CDC) with a round-up , a separate article on the obfuscation regarding the project's timetable, and a video  showing how public comment was limited. But the AY CDC's President Report, which includes slides prepared by developer Greenland Forest City Partners, was not yet posted. I've now posted it at the bottom, and excerpted several slides, with commentary. Note that, despite claiming that 1,800 units are under construction, 664 Pacific and 615 Dean are stalled, with no timetable for completion. Also note that the depictions of Final Open Space are rather fanciful, since they depend on a full build-out of the project, and we now don't know if that will be 2025, as previously though, 2035, as Forest City Realty Trust now sees as a time for financial analysis (perhaps after the project is built and stabilized), or sometime in between. The slide is contradicted by the proje...

Ok, maybe Forest City Ratner lost out on connections as the landlord for Democratic candidate Hillary Clinton, and CEO MaryAnne Gilmartin underestandably criticized Trump's posture toward women. Yes, Chairman Bruce Ratner reaffirmed that the city welcomes immigrants and "black lives matter." But despite whatever personal distaste executives and staff have, the company still has lots of links--and potential links--to Trump. (Both are  "creative with the truth," too.) And Forest City answers to shareholders and the bottom line. The D'Amato & Giuliani connection Politico reports that lobbyist (Park Strategies) and former Republican senator Al D’Amato is thrilled with the victory of President-elect Donald Trump and "suggested Trump should appoint former New York City mayor Rudy Giuliani as attorney general." Not only is D'Amato one of the company's lobbyists in Washington, but Giuliani and Forest City Chairman Bruce Ratner have lon...

It really needs to be seen again, this willful bypass of transparency. On Tuesday, my round-up coverage  of the meeting of the Atlantic Yards Community Development Corporation described how the AY CDC failed to follow its rules on public comment, as confirmed on the overall meeting video. Now I've excerpted those three moments into one short video. Starting off At the beginning of the meeting, as shown below, AY CDC Chairman Howard Zemsky (who heads the parent Empire State Development, which oversees/shepherds the project), said, "Consistent with the policy of our parent corporation, we welcome public comments on the items on the following agenda. After each item is presented, we will allow comments.... All comments should be limited to two minutes, and will only address the items under consideration. The final item is titled Public Comment... an opportunity for members of the public to provide comments on non-agenda matters." The swerve That's not what hap...

Update: Note one skeptical piece from Realtor.com, plus some market skepticism from Bloomberg Quint. So Forest City Ratner had a media preview yesterday to show some model units and pump up the volume for 461 Dean (aka B2), the modular rental building that's supposed to welcome tenants at the end of this month. (There's been much less coverage of the delays in Pacific Park , or Forest City's losses.) Available market-rate units seem focused on floors 11 and 17 Note: various media outlets reported that studios start at $2,450, one-bedrooms at $3,125, and two-bedrooms at $4,750. No one mentioned the "incentives" that were being offered as of September until   Bloomberg Quint . YIMBY said "a 690-square-foot one-bedroom on the 20th floor, which had a slightly cramped layout but offered breathtaking views" would rent for about $3,700, or about $64.35 per square foot. A 700 sf studio will rent for $3,200, or $54.86/sf. A 450 sf studio will re...

City & State’s Borough 50 Series is now out for Brooklyn, and the 50 people named include several with Atlantic Yards/Pacific Park connections. Unlike the publication's Annual Power 100 Series, the Borough 50 omits government officials to showcase business and community leaders. Some excerpts below. #7: Regina Myer President, Downtown Brooklyn Partnership ....No doubt her skill for city planning, extensive connections in government and the community and tireless drive will make her a success in her new endeavor, as she continues DBP’s tradition of making downtown Brooklyn one of the world’s greatest examples of urban mixed use, where you can live, work, shop and enjoy cultural experiences all within walking distance. #16: Jonathan Rosen / Valerie Berlin Founders, BerlinRosen These Brooklynites are two of the most influential consultants in the city because of their close ties to Mayor Bill de Blasio and members of the City Council... #17: MaryAnne Gilmartin Pr...

Hey, an 11/15/16 Sponsored post ( Get these sweet exclusive ticket deals to upcoming Nets games! ) on Brokelyn, that site for hipsters who seek budget fun, offers a deal for "our hometown heroes, the Brooklyn Nets... exclusively available through the brand-new Brooklyn Nets app." There's a three-game offer for $59: L.A. Clippers on 11/29 L.A. Lakers on 12/14 Philadelphia 76ers on 1/8 And a five-game offer for $89: Milwaukee Bucks on 12/1 L.A.Lakers on 12/14 Philadelphia 76ers on 1/8 Houston Rockets on 1/15 Indiana Pacers on 2/3 That's less than $20 a ticket, which is a good price, given that Clippers resale tickets start at $22 and Bucks tickets start at $25 . And Brokelyn promises "spots that normally cost more than twice as much," which suggests that attendance can't support the list prices. Then again, when Brokelyn--one of its regularly contributors writing this Sponsored post--says the Barclays Center "has the best food options o...

Beyond the developers'  opaque forecast on project delays, a lot was disclosed during yesterday's meeting of the Atlantic Yards Community Development Corporation (AY CDC). Despite a self-congratulatory statement about the work done by the AY CDC from the group's president--who just happens to be an executive of the state authority the new body is supposed to advise--it was a decidedly frustrating meeting for the public. Notably, at the end of the meeting, four public commenters spoke with frustration and anger about the lack of transparency regarding the project and the impacts on their lives. Those statement were heard but did not engender response. And then everyone went home. Developer denies "poor-er floor" Sublease re 535 Carlton During the meeting, Board Member Barika Williams, an affordable housing advocate, asked the developer about media reports-- in this blog --about collecting the lowest-income households "on particular floors" in...

"The sanctity of Bruce’s word is matched only by his vision," MaryAnne Gilmartin on Bruce Ratner - Forest City Ratner Cos. #CrainsEvents — Crain's New York (@CrainsNewYork) November 14, 2016 vs. his "reputation4 promising anything2 get a deal, only2 renegotiate relentlessly4 more favorable terms" https://t.co/uVZbPW08xD @chbagli https://t.co/y6FKat5hD0 — Norman Oder (@AYReport) November 14, 2016 Bruce Ratner at Crain's Hall of Fame award lunch: "We are a city of immigrants. We are a city where black lives do matter, they do matter." — Rosa Goldensohn (@RosaGoldensohn) November 14, 2016 One main Ratner promise to improve black lives via #AtlanticYards @pacificparkbk was ramp to union jobs. Didn't work https://t.co/RNe0TBYDjs https://t.co/WNuezJyrCN — Norman Oder (@AYReport) November 15, 2016 Bruce Ratner says 'all immigrants, all people of color' find a home in NYC. #CrainsEvents — Crain's New York (@CrainsNewYork) November ...

Click here for more coverage of the AY CDC meeting. Executives behind Pacific Park Brooklyn appeared today at a public meeting of a body set up to advise the state on the project--and got away without having to offer any specifics regarding announced delays. The action began at about 34:40 of the video below, a meeting of the Atlantic Yards Community Development Corporation (AY CDC), held at the Manhattan office of the parent Empire State Development, the state authority overseeing and shepherding the project. Forest City Ratner executive Ashley Cotton acknowledged that parent Forest City Realty Trust (FCRT)  recently announced an "impairment"--a write-down in asset value--of some $300 million, and that the project was delayed beyond the previously assumed 2025 finishing date. (That acknowledgment formalized what was obvious, given the failure to start buildings on the previous, tentatively announced schedule.) "The impairment," she said, is an "accou...