The Real Deal New York

Brookfield buys piece of Park Tower’s Greenpoint Landing

Companies will co-develop two high-rise rental buildings housing combined 780 units

October 27, 2015 01:20PM
By Rey Mashayekhi

Greenpoint Landing

Renderings of the Greenpoint Landing development in Greenpoint (credit: Handel Architects)

UPDATED, 7:00 p.m., Oct. 27: Brookfield Property Partners acquired a piece of the Greenpoint Landing residential development in Brooklyn from Park Tower Group and will co-develop two high-rise rental buildings at the project.

The Toronto-based mega-commercial landlord closed last week on the acquisition of two development parcels along Commercial Street in Greenpoint. Property records filed with the city Tuesday valued one of the parcels at $59.8 million, though a Park Tower spokesperson declined to disclose the complete purchase price.

The deal will see Brookfield co-develop two rental buildings on the site with Park Tower — one 30-story, 365-unit building and a larger 40-story, 415-unit residential tower, Brookfield said in a release. Work is set to start in the first half of next year, with completion slated for 2019 and project costs estimated at $600 million.

Developed by Park Tower, the 10-building, 22-acre Greenpoint Landing project is expected to hold 5,500 apartments, including a 1,400-unit affordable component, the first phase of which is being developed by L+M Development.

The site acquired by Brookfield sits adjacent to two planned, 100 percent affordable residential buildings at 21 Commercial Street and 33 Eagle Street, which will house a combined 191 rental units. The high-rises being co-developed by Brookfield are expected to be market-rate, however.

The partners broke ground on the third 100-percent affordable building at Greenpoint Landing, 5 Blue Slip, in June. It emerged at the time that the de Blasio administration renegotiated the entire project’s affordable housing subsidy with Park Tower and L+M, halving the projected per-unit subsidy from $65,000 from $136,000 previously.

The revised agreement included no future considerations for the developers, de Blasio administration sources told The Real Deal – with Alicia Glen, deputy mayor for housing and economic development, describing the deal as “a sign of [the city’s] commitment to getting the most affordable housing for our dollars.”