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Related backs out of Pacific Park project in Prospect Heights

Lender working to secure another developer for Atlantic Yards site

Related Companies Backs Out of Pacific Park
Related's Jeff Blau, Fortress’ Jack Neumark and Nick Mastroianni II (Related, Getty, AlanKHG, CC BY 4.0, via Wikimedia Commons)

Three months from now, 876 affordable apartments are due in Brooklyn. The trouble is, they don’t have a developer.

Related Companies is no longer planning to take over the rest of Pacific Park, the long-stalled development in Prospect Heights formerly known as Atlantic Yards. The lender, Nick Mastroianni’s U.S. Immigration Fund, told state officials that it is restructuring its plan and will need to begin the process of getting another developer approved, according to a source familiar with the situation. 

A spokesperson for Related declined to comment. Mastroianni also would not discuss the status of the project or the new developer. 

TRD reported in July that Related was in talks to take over the remaining development sites from Greenland USA. An auction was expected to take place this week, in which a joint venture between USIF, Fortress Investment Group and Related were expected to formally bid on the development rights for the sites. 

Related’s departure further prolongs the long-stalled project, which was unveiled more than 20 years ago.    

Any developer that takes over the sites must first receive approval from Empire State Development. “The state is eager for this project to move forward and has been strongly encouraging the parties involved to demonstrate progress,” a spokesperson for ESD said. “ESD has a process to vet and approve a permitted developer, which will be followed when a new developer is presented to us.”

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The future of the project has been up in the air for some time. Greenland defaulted on nearly $350 million in loans, and the company’s lenders, USIF and Fortress Investment Group, moved to foreclose on the property in 2023. An auction scheduled has been postponed multiple times.

The developer selected to replace Greenland will have to build platforms over active train tracks to support more than 3,200 residential units. 

The developers of Pacific Park reached a deal with the city in 2014 to finish the megadevelopment’s 2,250 affordable apartments by May 2025 or face millions of dollars in penalties. Of those, nearly 900 units have yet to be built, but it is unclear if the state will waive those fines.         

Related seemed an obvious choice to take over the sites, given its deep pockets and experience decking over active rail yards at Hudson Yards. It is unclear why Related decided against moving forward.          

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