Up until last Friday, state officials thought Related Companies was taking over the remaining sites at Pacific Park.
But the auction to transfer those development rights was called off, and it turns out Related isn’t going to swoop in and build over another set of active train tracks.
Did Related decide it wasn’t worth taking on another massive, controversial mega-development? Did the company figure with all the uncertainty around key federal financing programs for affordable housing and looming tariffs, maybe it was best to sit this one out?
We still do not have the full picture of who is going to take over the six development sites, where platforms over the train tracks were expected to hold more than 3,200 apartments. However, the U.S. Immigration Fund has indicated that it wants to bring on Cirrus Real Estate, a company led by former vets of BlueMountain Capital and Fortress Investment Group (the latter of which has a stake in the debt backed by the Pacific Park development rights).
USIF says it has inked a letter of intent with Cirrus to come on as co-developer, to lead capitalization of the project. It is still finalizing another co-developer to bring on.
Before things can move forward, USIF will need to present its plan (all developers, the structure of its agreement with these parties, its vision for the site) to Empire State Development, which needs to sign off on all of this.
There also still needs to be an auction. And then, depending on the parameters of the new development team’s proposals, potentially changes to the general project plan for the development sites, and a new environmental review. This is all to say, a long road lies ahead.
Interestingly, last year, Cirrus formed a partnership with the Building and Construction Trades Council, to invest (including money from construction union pension funds) $100 million into workforce housing. The fund set a goal of eventually raising $400 million. I was told this fund may contribute to Pacific Park.
What we’re thinking about: I am, of course, wondering who the other co-developer(s) will be at Pacific Park. If it’s you, or you know who it is, send a note to kathryn@therealdeal.com.
A thing we’ve learned: NJ Transit engineers may be on the verge of a strike. The Brotherhood of Locomotive Engineers and Trainmen rejected a settlement proposed by a board overseeing its wage dispute with NJ Transit, the New Jersey Monitor reports. If they do not come to an agreement, the union could launch a strike as early as March 22.
Elsewhere in New York…
— Tariffs may give rats the advantage. NYC has been rolling out new trash bins that officials say are more rat-resistant. The bins, which cost $1,000 each, are manufactured in Quebec and could be subject to Trump’s pledged 25 percent tariff on all Canadian imports, Gothamist reports.
— ICYMI, Trump is considering halting New York’s congestion pricing program by withdrawing a key federal authorization, the New York Times reports. If he moves forward with that plan, New York officials would likely sue.
— Attorneys for Mayor Eric Adams met with Department of Justice officials in Washington on Friday, NBC New York reports. This meeting followed reports that an attorney for the mayor had contacted DOJ officials, seeking to have the corruption case against Adams dropped.
Closing Time
Residential: The priciest residential sale Friday was $16 million for a condo unit at 140 Franklin Street in Tribeca. The unit is 6,300 square feet and was listed by Compass’ Eric Brown and Zeve Salman of the Elevated Team.
Commercial: The most expensive commercial closing of the day was $30 million for an office building at 74-09 37th Avenue in Queens. Per reports, CEO Asef Bari of Bari Home Care purchased the Bruson Building from an entity called the Bruno Family Trust. Cushman and Wakefield represented the seller while Guru Real Estate Services represented the buyer, per Crain’s.
New to the Market: The highest price for a residential property hitting the market was $8 million for a condo unit at 111 Murray Street. The Tribeca condo is 2,300 square feet and is listed by Compass’s Rachel Glazer.
Breaking Ground: The largest new building application filed was for a 44,937-square-foot, seven-story building at 3862 Sedgwick Avenue in the Bronx. The development will be mixed-use with nearly 20,000 square feet dedicated for residential. Atlant Pashko of Atlant Pashko Architect was the applicant of record.
— Joseph Jungermann
