Atlantic Yards/Pacific Park Report

As noted by New York YIMBY, the affordable housing lottery is open for the Grand Pacific Apartments, aka 985 Pacific Street (or 979 Pacific Street), one of the first buildings to emerge from spot rezonings in Community Board 8's so-called M-CROWN district. A larger area around Atlantic Avenue, between Vanderbilt and Nostrand avenues, is currently being studied for a rezoning, with expanded development opportunities and city infrastructure investment, as part of the Atlantic Avenue Mixed-Use Plan (AAMUP). Of the 69 units at the intersection of Pacific Street and Grand Avenue, 18 (26%) are below-market, at a blended average of 60% of Area Median Income (AMI): 14 affordable to low-income households, at two income "bands," and four affordable to middle-income ones. This spot rezoning delivered somewhat more public benefits, in terms of affordability and job-creating space, than two other spot rezonings that proceeded while Council Member Laurie Cumbo was in office, but, as ...

According to the latest financial disclosures to bondholders from the Barclays Center operating company, the arena company still isn't earning enough profit to cover construction bonds--but a significant uptick in ticket sales may point to a better future. The arena company made an $12.5 million profit, according to unaudited (and thus unofficial) statements, in the first six months of calendar year 2023, according to financial documents recently disclosed to bondholders. See screenshot above right. That's well less than the $18 million reported during the first half of calendar year 2022. Then again, the Brooklyn Nets no longer had superstars. The fiscal year ends June 30. That first-half result, coupled with nearly $4 million in profit  (see below left) in the first half of the 2023 fiscal year, won't be enough to cover the arena's construction debt in FY 2023, which ended June 30. (In the similar period a year earlier, the arena barely broke even.)  So the combined ...

So I'm late to this, but New York Magazine's big 8/2/23 profile of former Deputy Mayor Dan Doctoroff,  What the Builder Built  is worth a critical read.  In the magazine's Table of Contents, the subheading is "Dan Doctoroff, the stubborn advocate for a new New York City, reckons with his legacy," while the article is appended with a slightly differnt framing: "Under Mayor Bloomberg, Dan Doctoroff remade the city at top speed. Now, as New York is again mired in crisis, he faces his own." Architecture critic Justin Davidson is a deft writer, and captures much of what Doctoroff (empowered by Mike Bloomberg, of course) shepherded, including: On the day I meet  Dan Doctoroff , I walk across Manhattan from the Shed, which he created, to the East River Esplanade, which he planned; catch a ferry, which he launched; get off at the  Long Island City  waterfront, which he reclaimed from industrial neglect; and enter a café overlooking  Hunters Point South Pa...

From the Wall Street Journal today, China's 40-Year Boom Is Over. What Comes Next? , with the subheading, "The economic model that took the country from poverty to great-power status seems broken, and everywhere are signs of distress." From the article: What worked when China was playing catch-up makes less sense now that the country is drowning in debt and running out of things to build. Parts of China are saddled with under-used bridges and airports. Millions of apartments are unoccupied . Returns on investment have sharply declined. Beyond the broken model, China faces "unfavorable demographics"--the impact of the one-child policy on a shrinking labor force--and some economic de-linking by former trade allies. That said, the authors cite "China's burgeoning electric-vehicle and renewable energy industries," as well as the country's capacity to focus investment on innovation. However, the "housing bubble has since popped," major dev...

The latest Atlantic Yards/Pacific Park Construction Update (bottom), covering the two weeks beginning  Monday, Aug. 21 was circulated yesterday at 11:55 am (lead time) by email by Empire State Development (ESD), the state authority that oversees/shepherds the project. There's no major construction activity, but, at the B12/B13 towers (595 Dean) "Courtyard Work remains to be completed pending final delivery of materials." Indeed, the open space isn't yet done, though the buildings have been open for months--albeit not for the "affordable" units . Baseline competency That said, this document suggests a return to baseline competency by ESD and/or the preparer of the document. (The document has traditionally been prepared by the master developer, long Greenland Forest City Partners, now operating as Pacific Park Development LLC.) First, the document was circulated by email, with lead time, as had long been the practice--though for several weeks it wasn't cir...

Photos by Norman Oder I wrote in January that the high-end, Minneapolis-based chain Life Time gym would occupy two floors, plus part of the ground floor, at 18 Sixth Ave., aka Brooklyn Crossing, which flanks the Barclays Center at the northeast corner. At that point, there was no signage, or timetable. Now there is, on both the Atlantic Avenue and Sixth Avenue flanks for the building, stretching between the second and third floors. Life Time also will occupy part of the Sixth Avenue ground floor frontage, as shown in a photo below. While no timetable has been announced, one work permit (below) expires in April 2024 and the club's website states "Arriving 2024," as shown in the screenshot below. Fees? Life Time--which, upon a 2016 announcement of its first outpost in Manhattan was described by one publication as "crazy luxe"--opened a club in 2021 at Front & York in DUMBO. As of January, membership started at $259/month. Now it's $279/month. There may...

Fortune magazine on 8/2/23  released  its 2023 Global 500 list, with Greenland Holding Group, parent of the main Atlantic Yards/Pacific Park developer Greenland USA,  plummeting to #205 , after  rising  to #125 in 2022 from #142 in 2021. That reverses an ascent that came part of the way to meeting the company's  stated  (in 2014) ambition to reach the top 100 by 2020. Screenshot from Fortune Dropping revenue, plunging profits The well-known Fortune Global 500 ranking relies solely on revenue in the past fiscal year. Greenland had $64 billion in revenue, a 23.3% decline from $84.5 billion in the previous year. Though not part of the ranking, it's worth noting that Greenland's profits plunged 84.3%, to $150 million from $958 million. Some other developers are in the red.  Greenland's employee count dropped 12.3%, from 79,999 to 70,177. In 2021, the number of employee exceeded 86,000.  All this suggests Greenland would be cautious toward making ...

HPD Selects M/WBE-Led Development Team to Convert Parking Lot into Housing for Low-Income, Homeless Seniors in Central Brooklyn , city's Department of Housing Preservation and Development (HPD) announced 8/8/23.  The 17,145 square-foot lot, at 542 Dean Street between Sixth and Carlton Avenues, and adjacent to the Dean Playground, is currently used for city vehicles. "The winning plan, Park Edge, gets its name from the site’s proximity to the highly active playground, basketball court, and ball field next door," the press release states. "As part of the design plans, Park Edge will create a new entrance to the park along with public seating and planted areas." The press release is silent on the project's timing, the expected number of units, and the building's scale, but according to previous documents , the city had "committed to develop 80-100 senior units" (at 85-95 feet), thanks to an upzoning. Current zoning  would allow  58 units at 55 fee...

OK, add another event--a plaza event--to the August 2023 Barclays Center calendar : a party for Nets fans this Sunday, Aug. 20, from 11 am to 4 pm. From a Brooklyn Nets email:  In anticipation of the upcoming season, on August 20th, Ticketmaster and the Nets are hosting a party on Ticketmaster Plaza outside Barclays Center! The day will be filled with appearances by the Nets Rookie Class, free live performances by talent such as Lola Brooke and DJ Funk Flex, giveaways, and food that celebrates Brooklyn. Note that, as I've written, its "our plaza" when the arena doesn't want to highlight the sponsor; otherwise, since the arena opening in September 2012, it's been New York Daily News Plaza , Resorts World Casino NYC Plaza , SeatGeek Plaza , and now Ticketmaster Plaza.

When last November I wrote about the ratings-agency perspective on Shanghai-based Greenland Holdings Group (aka Greenland Holding Group), the parent of the main Atlantic Yards/Pacific Park developer, Greenland USA, the news was ominous. Standard & Poor's (S&P) had reversed its June decision to lift its long-term issuer credit rating on Greenland from SD (selective default) to CCC- (substantially risky). It had since sunk back to SD, with specific notes considered D or in default. My conclusion: Greenland's subsidiary likely had little cushion of money to build out Atlantic Yards/Pacific Park, which--coupled with rising interest rates and the absenceof the 421-a tax break --provide little incentive to proceed with the long-pending two-phase platform and the six towers (and required affordable housing, due by May 2025) that it would support. Yes, Greenland needs to build to recoup its ongoing, yet incomplete investment ($11 million a year through 2030) in railyard devel...

Photos by Norman Oder Aug. 5 (except lobby) "Open Streets, Good Vibes" is the message from Vanderbilt Avenue Open Streets  in Prospect Heights, "the only volunteer-run Open Street of its kind in Brooklyn, and one of the most visible in New York City." It's open this year April 21 through October 29, Fridays 5-10 pm, and Saturdays, Sundays, and holidays 12-10 pm.  And when I've stopped by, yes, the vibes seem good. Chelsea Piers steps up I couldn't help but notice, however, that one of the sponsors, as shown in the photo below, is Chelsea Piers, operator of a fitness center and fieldhouse at the two-tower 595 Dean complex, mostly below ground, not far to the west along Dean Street. So, by allowing money-losing parking to be swapped for valuable Chelsea Piers space, ESD gave a bonus to developer TF Cornerstone, which had bought development rights from Greenland Forest City Partners, owned nearly in full by Greenland USA.  And ESD ignored the call by the B...