Friday, November 4, 2016

Forest City Delays Pacific Park Brooklyn Over Real Estate Market Woes

Forest City Realty Trust suffered a net loss of $430.9 million for the three months ended September 30, 2016, mainly because of the Pacific Park mega-project.

The loss includes "an impairment of non-depreciable real estate of $307.6 million, primarily related to Pacific Park Brooklyn," FCR reports. (This is the Atlantic Yards project near Atlantic Terminal Mall.)

The company decided to revise the overall project schedule to "delay future vertical development."

Forest City blamed negative market conditions and timing. These include "the impact of increased apartment supply, uncertainty surrounding 421A tax abatement and continued escalation in construction and trade costs," the company said.

Three properties at Pacific Park Brooklyn that are part of the company's partnership with Greenland USA are still under construction:
  • 535 Carlton, a 298-unit, all-affordable apartment community, is expected to begin phased opening in the fourth quarter of 2016.
  • 550 Vanderbilt, a 278-unit condominium property, is expected to begin phased opening in the first quarter of 2017.
  • 38 Sixth Avenue, a 303-unit, all-affordable apartment community with 6,000 feet of street-level retail, is expected to begin phased opening in the second quarter of 2017

Additional insight at Atlantic Yards /Pacific Park Report.

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