A new development team has formed to take over the stalled development of Pacific Park after the current owner fell into financial trouble.
Fortress Investment Group, U.S. Immigration Fund, Cirrus Real Estate Partners and LCOR on Tuesday announced the formation of a joint venture for the development of what was formerly known as Atlantic Yards in Prospect Heights. Fortress and USIF have formed a partnership with Cirrus, and the development is being led by Cirrus and LCOR as co-developers for the project.
The newly assembled team will transform what is still an open-air rail tracks operated by the Metropolitan Transportation Authority into a residential, commercial and recreation hub, the developers said. So far, eight residential buildings, Barclays Center, a health care clinic and a public school have been built, but none of the promised affordable housing units.
“Pacific Park is one of the most important and most complex residential real estate developments in the U.S.A. today, and we’re honored to be stepping up to support the project," Tim Sloan, global head of Real Estate at Fortress said in a statement.
The developers and Empire State Development did not disclose details of the agreement or how the state and new team will deal with Greenland USA, the Chinese developer that defaulted on two construction loans in 2024, which paused work on the site. Greenland owes more than $1.75 million in monthly fines for failing to deliver nearly 900 units of affordable housing by the end of May, if the state honored the terms of a 2014 legal agreement. The state however did not force Greenland to pay the money owed because the firm threatened to sue the state, upsetting many civic leaders.
“Brooklyn has waited long enough," said Hope Knight, president and commissioner of Empire State Development. "While progress has been made – including the construction of more than 3,000 units of quality housing -- advancing the next phase of Atlantic Yards means delivering the additional affordable residential units, jobs, open space and neighborhood amenities the area’s residents deserve."
Meanwhile, the new development team promised to construct the remaining buildings with union members.
"Restructuring this project has been a complex but necessary step to ensure long-term success," said Nicholas Mastroianni, chairman of U.S. Immigration Fund. "This represents a turning point not only for our investors but also for New York City’s continued commitment to housing and transit connectivity.”
Anthony Tortora, co-chief Investment Officer of LCOR, said the team is ready to meet the city's critical housing needs.
"We’re thrilled to step up and deliver thousands of units of sorely needed housing in a public-private partnership with LCOR, ESD, MTA and the Building and Construction Trades for the benefit of our stakeholders and community to help combat the housing crisis that currently exists in our city,” said Joseph McDonnell, managing partner of Cirrus Workforce Housing.
