The Real Deal New York

Judge ups valuation of condemned Brooklyn site

Juror raises appraisal of Atlantic Avenue property from $2M to $9M

May 29, 2014 06:10PM

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730-40 Atlantic Avenue (Credit: PropertyShark)

730-40 Atlantic Avenue

A judge has valued a condemned property at 730-40 Atlantic Avenue, close to where the Barclays Center stands, at approximately $9.2 million.

The property was located in an industrial-use zone until 2001 and later condemned by the Empire State Development Corporation to make room for the Atlantic Yards project.

The property’s current owner, 730 Equity Corp, applied for a rezoning that would allow a hotel to be built on the site.

While earlier valued at around $2 million, Brooklyn Supreme Court Justice Wayne Saitta reviewed the prior appraisal and concluded earlier this month that the actual value of the property is around $9 million.  

The judge said that Atlantic Avenue, unlike neighboring Pacific Street, “creates a situation that can support a larger development.”

“[E]ven though a 124,000-square-foot hotel is physically possible on the site, the Court must also consider whether such a hotel is financially feasible,” Saitta wrote in the ruling. The ESDC maintained that a hotel in that location would not be viable. [Brooklyn Eagle] — Claire Moses

  • normanoder

    No, the decision did not pave the way for a hotel.

    The site was condemned by Empire State Development for the Atlantic Yards project. The only thing at issue was the valuation.

    The state claimed nothing would be developed beyond the current zoning, which permitted a one-story building. The owner argued that, *without Atlantic Yards*, the site would’ve been rezoned and, instead of an empty lot or gas station, a hotel could be built.

    That led the judge to the valuation.

    This is important not because of the possibility of an imaginary hotel, but because a judge agreed–in contrast to Empire State Development’s bogus claim that nothing would be built without Atlantic Yards–that a rezoning would have been likely.

    http://atlanticyardsreport.blogspot.com/2014/05/reality-warp-judge-in-eminent-domain.html

  • crawford57

    Good news. Hopefully a hotel will be built, which will complement Atlantic Yards well.

    And Mr. Oder, obviously nothing would have been built without Atlantic Yards. Atlantic Avenue has lowrise, manufacturing zoning. There is no 12-floor hotel anywhere along this corridor.

    • normanoder

      You’re just compounding the error of the Real Deal article: the land has been taken *for* Atlantic Yards, and a residential tower is planned.

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