Pacific Park gets new development team, $12M for affordable housing fund

"It's official: A long-stalled megadevelopment in Brooklyn has a new development team that will take over seven sites and, in a new twist, pay $12 million toward an affordable housing fund. A joint venture led by Cirrus Real Estate and LCOR has scooped up the remaining sites that make up Pacific Park, a massive project that was launched more than two decades ago."

"Through a foreclosure auction on Tuesday, the joint venture took over the development rights to six rail yard sites, after Greenland USA defaulted on nearly $350 million in loans tied to the properties. Beyond Cirrus and LCOR, the joint venture taking over the sites includes U.S. Immigration Fund and Fortress, but those firms won't have an active role in managing the development."

"As part of an agreement with the state, the joint venture will pay $12 million toward an affordable housing fund, of which $4.5 million would be paid upfront, according to state officials. The money, which will be paid in installments, is intended to fill in for penalties that were supposed to kick in when the current developer, Greenland USA, failed to finish the project's remaining 876 affordable apartments by May 2025."

Cirrus Real Estate and LCOR lead a joint venture that acquired the remaining Pacific Park development sites through a foreclosure auction after Greenland USA defaulted on nearly $350 million in loans. The acquisition covers six rail yard sites requiring platforms over tracks between Pacific Street and Atlantic Avenue, plus site 5 near Barclays Center, though Greenland remains part of the joint venture for that site via a separate private transfer. U.S. Immigration Fund and Fortress are included in the venture but will not manage development. The joint venture agreed to pay $12 million into an affordable housing fund, with $4.5 million upfront, to offset penalties tied to 876 unfinished affordable apartments.

Read at therealdeal.com