Greenland-Forest City to take over P.C. Richard site

JV may build a massive office project on property
February 27, 2017 01:30PM

MaryAnne Gilmartin and 590 Atlantic Avenue in Downtown Brooklyn

UPDATED, Feb. 27, 2017, 2:44 p.m.: The joint-venture between Greenland Group and Forest City Ratner looks poised to take over a site across from the Barclays Center where it’s considering building a 1.5-million-square-foot complex.

Cleveland-based Forest City Realty Trust will likely transfer its interest in 590 Atlantic Avenue to the joint venture, according to journalist Norman Oder’s blog Atlantic/Pacific Report. The company is considering building two mixed-use towers at the site, which would be developed through the joint venture. A smaller tower — 250-feet tall and 439,050 square feet — is already approved at the site, known as Atlantic Center Site V or Site 5. Forest City is looking into transferring 1.1 million square feet of development rights to the property to make way for a larger complex.

The real estate investment trust listed the site — currently home to P.C. Richard & Son and Modell’s — among “likely dispositions” in documents posted for investors on Monday.

P.C. Richard filed a lawsuit against Forest City Ratner TRData LogoTINY, the REIT’s New York division, in January 2016 over the state’s eminent domain condemnation of the property. The retailer claims that the developer promised in 2006 to provide space at the new development if the state were to condemn the site for the Atlantic Yards project. The developer has subsequently countered that the 2006 agreement was non-binding.

Forest City announced in November that it would be delaying construction on the remaining Pacific Park buildings due to the weakening residential market. Greenland Group holds a 70 percent stake in the project, with Forest City Ratner holding the remaining 30 percent stake.

In late 2016, Forest City Realty Trust executives announced a $307.6 million impairment — a drop in asset value — largely due to Pacific Park Brooklyn, citing high construction costs, a weakening residential market and uncertainty over 421a. [Atlantic Yards/Pacific Report] — Kathryn Brenzel

Correction: An earlier version of this story, based on source material, incorrectly posited that Forest City Ratner planned to sell the asset. The property is instead being transferred to the joint venture.