Atlantic Yards/Pacific Park Report

It's astonishing, still. In 2017, I  didn't quite believe  Forbes's valuation of the Brooklyn Nets at $1.8 billion, the 7th most valuable team in the NBA, up from $1.7 billion in 2016 and $1.5 billion in 2015, especially since that somehow included the Barclays Center. From Forbes But yes, Forbes was right in 2018 to value the Nets at $2.3 billion, sixth in the league, because that was the valuation set in the deal by Mikhail Prokhorov to sell the team--first 49%, the rest, an option to be exercised in 2012--to billionaire Joe Tsai. For 2019, Forbes (Kurt Badenhausen and Mike Ozanian)  values the Nets at $2.35 billion, a tiny uptick. They're still sixth in the league. Operating income has risen slightly as well, from $52 million to $53 million, which, relatively speaking, is great news, since the Nets for years lost money. But there's a paradox on Forbes's NBA  valuations list : eight teams worth less earn more income, sometimes much more...

This past November, I cited  a Bloomberg article headlined  Short-Dated Bond Spree by China Builders Flashes ‘Systemic Risk’ , which mentioned that Greenland Holding Group was aiming to pay 9% on 1.5-year notes--which was actually a lower interest rate than at one rival mentioned. So Greenland, the main developer of Atlantic Yards/Pacific Park, is under stress. Now a 1/30/19 article in the South China Morning Post, Buoyed by easing, expected end to Fed rate hikes, China developers issue US$8.6 billion in offshore bonds , suggests a slightly better picture: Top mainland Chinese property developers are flocking to the offshore bond market to capitalise on a recovery in investors’ appetite. About 14 companies, including big guns Country Garden and Evergrande China, have already issued bonds worth US$8.6 billion this year, more than doubling the amount for January 2018, according to Chinese financial data provider Wind Information. The article cited yields from 6.25% to 8.25%...

Well, if the developers of 550 Vanderbilt can't yet sell their 3-bed, 3.5-bath maisonette, Townhouse 1, listed for $4.5 million (down from $4.65 million, not to mention the potential 20% flex in the sales price), it can always host a party on Friday, Feb. 15, the day after Valentine's Day. According to an announcement on EventBrite, "High Tea Club NYC, New York City’s premier marriage-oriented matchmaking concierge for Asian Americans, is pleased to announce that it will be hosting an exclusive, Crazy Rich Asians-themed Valentine's Day event with Greenland Group." The High Tea Club  calls itself  "Dating for the 1%." Presumably it's not a complete coincidence that Greenland Group is based in Shanghai, with its subsidiary Greenland USA, the majority owner of Atlantic Yards/Pacific Park. It's a pretty spacious place , some 3,200 square feet over two levels. The entrance is on Dean Street west of Vanderbilt Avenue. The common charges are...

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...

A message yesterday from the Empire State Development (ESD) Atlantic Yards team: The February 13 meeting of the Directors of the Atlantic Yards Community Development Corporation (AYCDC) has been postponed. A new meeting date will be announced. No reason was announced, but it's been nearly 11 months since the last meeting, and the body is supposed to meet quarterly. It could be that they're again having trouble mustering a quorum, which has long been a problem. But they could've told us that, right? Bottom line: it's hard to see the AY CDC as a priority for the Cuomo administration or, for that matter, some of the local elected officials who've taken so long to appoint members after vacancies have occurred. Moreover, it's a sign of apathy and/or frustration that so many appointees have resigned or not welcomed re-appointment. And a meeting that's held during work hours in Manhattan--as this one was planned , though some previous ones have been held in ...

The community notice for February 2019 events at the Barclays Center did not include, as has been the practice, any private events. The logic for including them is that some draw large crowds and neighbors should be alerted. But that doesn't mean there aren't any private events. A 2/7/19 Amsterdam News article, Spreading the gospel of HBCUs , cites an event today/tonight launched by Andres “Dre” Martin, who's now a Brooklyn Nets Account Manager: HBCU Night, an event touring the nation that celebrates African-American Heritage and the culture of historically Black colleges and universities. ...His latest event is taking place this Friday at the Barclays Center in Brooklyn. It will consist of a panel discussion with HBCU alums at the top of their game, a college fair, networking event and a career fair for HBCU alums in the city. The event is touring to other cities in the coming weeks. It's not a huge event--such nights have an average attendance of 500--but it ...

Note this glancing mention in Long Island Business News column 2/5/19 by Kevin Law, president & CEO of the Long Island Association,  Law: Proposed state budget is a good start; Long Island needs more : In addition, the [governor's proposed] budget impacts local governments by cutting Aid and Incentives to Municipalities. Finally, it restricts sports gambling to the upstate casinos only. Why shouldn’t Long Islanders have the ability to go to Aqueduct, Belmont Park or Jake’s 58 to place a bet on sporting events beyond horse racing? This makes me wonder about the business plan for the Belmont arena, an expensive building with one anchor tenant, the New York Islanders, and a retail and entertainment complex coupled with it. Sports gambling could add key profits. And, as a New York Times Magazine article recently explained , sports gambling is poised to explode nationally, adding to the experience of a game, bringing in new revenue and likely new customers. Reasons for doubt ...

In a ruling that--if upheld--adds cost and complication to plans for an ambitious two-tower complex at a key Pacific Park site, a state judge has rebuked original project developer Forest City Ratner, saying it reneged on a promise to provide retailer P.C. Richard replacement space in that complex. That site across Flatbush Avenue from the Barclays Center, as of three years ago, was supposed to include the borough’s largest office tower, “an iconic office building for the new Brooklyn economy,” a spokeswoman for Greenland Forest City Partners told Crain’s New York Business. “Brooklyn's own version of Time Warner Center,” the CEO of original developer Forest City Ratner called the giant two-tower project at Site 5, currently occupied by P.C. Richard and Modell’s Sporting Goods. The site is bounded by Fourth, Flatbush, and Atlantic avenues, and Pacific Street. Arrow points to P.C. Richard, in Site 5 Assuming that the judge's order requiring space to be provided f...

The latest Atlantic Yards/Pacific Park Construction Update (bottom), covering the two weeks beginning Monday, Feb. 4, was circulated at 1:21 pm yesterday (late) by Empire State Development (ESD) after preparation by Greenland Forest City Partners. There are few changes from the previous update, given that vertical construction is not quite ready, and most ongoing work is infrastructure or demolition. Notably, though, surveying work will occur at the B15 site, east of Sixth Avenue between Dean and Pacific streets, slated for a 27-story tower with a middle school at its base. Barriers and other fencing material may be delivered to the site during this reporting period. Also, while the update no longer predicts pile drilling for a railyard retaining wall at Vanderbilt Avenue--which suggests that it's done--there will be work at the western end of the Vanderbilt Yard. A contractor will start removing the existing Motor Generator Building, which is located under the Sixth Avenue B...

Billy McFarland Bought $100k Worth of Tickets from Barclays Center for Magnises , reported Dave Brooks of Amplify 1/28/19, citing evidence in a bankruptcy case. That means that the now-disgraced founder of the scammy Fyre Fest was looking for ways to market Magnises, his credit card for millennials. And one of the ways, as Brooks put it, that "McFarland blew through $26 million in investor money" was by paying Brooklyn Events Center $100,000 for tickets in February 2017. “We're exited to announce Magnises SportsPass, powered by Barclays Center, 48 VIP tickets to enjoy Brooklyn Nets, New York Islanders, #BrooklynBoxing and #BrooklynHoops," a 7/18/16 post stated (right). Interestingly, that was well before the actual payment to the arena operating company, so presumably there was a deal beforehand. Barclays Center didn't comment for the article, but it's not unlikely that the arena makes group-sale deals with various potential buyers (see: Craig Carton ...

The Barclays Center has released its February 2019 calendar, which includes 11 events over 10 days: six Brooklyn Nets games, three New York Islanders games, one concert, and one G-League Long Island Nets game. No private events are listed. While group tickets are apparently available for the 11 am Long Island Nets game on Monday, Feb. 4, individual tickets are not for sale, perhaps because the team and timing are not big draws. (It was apparently previously scheduled for the Nassau Coliseum.) In the previous two years , there were a significant number of family shows, as well. February 2018: 25 ticketed events Beyond the four private events on three days, in February 2018 there were 25 ticketed events on 20 days: seven Nets games, seven Islanders games, one concert, one comedy event, and nine Marvel Universe superhero circus events.

In Playoffs at Nassau Coliseum? NHL owes it to Islanders , Newsday sports columnist Mark Herrmann argues that the league, which allowed the move to the Barclays Center--which has more seats and luxury suites--but didn't work, should reward longtime local fans. Though Barclays might generate more revenue, Herrmann cites the sacrifices made by fans, and argues that "if the Islanders play at the Coliseum, they will have a better shot at winning, and playing more games, thus generating more revenue. He writes: The Coliseum’s electricity makes the Islanders an attractive destination now. Who knows how many players the team has missed out on — or lost — because the commute, the ice and the atmosphere at Barclays Center have been less than ideal?

Photo: Norman Oder Not so long ago, in September 2014, as shown in the screenshot below right from Google Street View, the address 202 Flatbush belonged to New Directions, a substance abuse treatment program that has since moved to 500 Atlantic Avenue , between Nevins Street and Third Avenue. Now that Flatbush address--just a half-block below the Barclays Center, and another sign of the transformation of Flatbush--is home to Citiva , Brooklyn's first medical marijuana dispensary, in what might seem a karmic twist. The dispensary opened 12/30/18. The signage is classy, and the look boutique-y, as shown in the handout photo below right. And on Tuesday, 1/22/19, as shown in the photo above left, they were getting their sign up. Should Gov. Andrew Cuomo, once an opponent of legalizing recreational marijuana, follow through with plans for such legalization--see more on that below--companies like Citiva (sounds like... sativa , a cannabis type) may be well-positioned to expand ...

This is the eight and final article based on discussion at the 1/22/19 Atlantic Yards/Pacific Park Quality of Life meeting. The  first  concerned timing for the B15 tower, with school, and the B4 tower. The  second  concerned questions about the affordability of future income-restricted housing. The  third  concerned plans to constrict streets around the B15 tower. The  fourth  concerned plans for the railyard, demolition, and Times Plaza. The fifth concerned an absurdist dialogue about the definition of construction. The sixth concerned NYPD parking; post-event enforcement; ticket distribution, and the Neighborhood Support Team. The seventh concerned the project's health center. The Atlantic Yards Community Development Corporation (AY CDC) is supposed to meet quarterly and offer advice to the parent Empire State Development (ESD). But it  hasn't met  since last March--its second meeting of 2018. "We are actively working to sch...

This is the seventh of several articles based on discussion at the 1/22/19 Atlantic Yards/Pacific Park Quality of Life meeting. The first concerned timing for the B15 tower, with school, and the B4 tower. The second concerned questions about the affordability of future income-restricted housing. The third concerned plans to constrict streets around the B15 tower. The fourth concerned plans for the railyard, demolition, and Times Plaza. The fifth concerned an absurdist dialogue about the definition of construction. The sixth covered NYPD parking, post-event enforcement, and more. So, how exactly does the new health center at 38 Sixth, the tower at the southeast corner of the arena block, fulfill the Community Benefits Agreement (CBA), a question I raised in this blog ? I tried to raise it at the meeting. The CBA, I noted, says only that the developer should provide space for the health center to be built out, and that the program, funding and who it is serves would be determi...

Two days ago, not long after I wrote about the absurdist dialogue regarding whether noisy construction activity qualified as construction noise for which the state could require mitigation, Peter Krashes, the Dean Street resident on one end of the dialogue, wrote, "This morning our house shook with the dropping of massive boulders by Tully [Construction] into the B12 lot." That's a lot just west of 550 Vanderbilt (aka B11) on Dean Street west of Vanderbilt Avenue. Tully is working on the permanent and relocated Vanderbilt Yard, a project that, at least according to its web site (right), was supposed to be done in 2017. Karshes sent the photo below, time-stamped 9:08 am. You can see some boulders through the fence, and more in the second photo.  Though Krashes couldn't say all boulders were dropped there that morning, there's hasn't been much construction-related work in that lot for a few weeks.

This is the sixth of several articles based on discussion at the 1/22/19 Atlantic Yards/Pacific Park Quality of Life meeting. The  first  concerned timing for the B15 tower, with school, and the B4 tower. The  second  concerned questions about the affordability of future income-restricted housing. The  third  concerned plans to constrict streets around the B15 tower. The  fourth  concerned plans for the railyard, demolition, and Times Plaza. The fifth concerned an absurdist dialogue about the definition of construction. With 24 parking spaces been provided at the 535 Carlton garage for cops working at the 78th Precinct a little more than one long block away at Sixth Avenue and Bergen Street, the "developer is being compliant with the project requirement," said Tobi Jaiyesimi of Empire State Development, the state authority overseeing the project "Law enforcement," she added somewhat cagily, "of course has autonomy with use of this space." ...