Cirrus Real Estate and LCOR want to take over the remaining railyard development sites at Pacific Park, as well as a separate property known as Site 5.
During a meeting on Wednesday, Empire State Development confirmed the developers submitted an application to be designated as a “permitted” developer of six railyard sites in the long-stalled Brooklyn megadevelopment. The development rights were supposed to be transferred to a new team, approved by ESD, by Aug. 1, with millions of dollars of late fees on the line. Now, the deadline has once again been extended.
ESD officials indicated that Greenland, the current Pacific Park developer, along with the U.S. Immigration Fund and Fortress Investment Group, would be part of the joint venture with Cirrus and LCOR, but would not have an active role in managing the development. Their involvement would be financial, based on their previous investments in the development sites, the officials said.
Cirrus and LCOR are also applying to take over Site 5, home to a former Modell’s and a P.C. Richard & Son near the Barclays Center. Greenland, which currently controls Site 5, would also remain part of that joint venture. Previous plans for the site included two office towers, and Greenland has also proposed housing on the site. The Modell’s space is currently being used for a youth basketball training facility.
Pacific Park was supposed to be done by now. Thanks to a 2014 agreement with the city, Greenland was on the hook to finish the project’s 2,250 affordable apartments by the end of May 2025. Failing to do so meant the developer would need to pay millions of dollars in fines.
With 876 affordable units yet to be built and no platform over the train tracks to accommodate the development, Greenland did not meet the deadline. In May, the state announced that it would not fine Greenland. Instead, ESD set new deadlines
As part of the new deadlines, ESD pledged to approve the new development team for the railyard site by Aug. 1, but officials said Wednesday that the team’s application for Site 5 extended the amount of time the agency needs for its review. Officials now say they are hoping to approve the development team by the end of September.
ESD’s Arden Sokolow said Greenland has challenged the enforceability of the fines, arguing that it has faced “unavoidable delays.” Sokolow indicated that imposing the fines at this point could result in litigation and disrupt the project just as a new development team is poised to take over.
According to the new parameters set by the state, the development team must have a “feasible” project framework and new timeline for taking the project through public review.
The Real Deal previously reported that Cirrus and LCOR were preparing to take over the site. ESD needs to sign off on the replacement developers for the platform sites, as well as Site 5.
The development rights for the railyard sites still need to be officially transferred through a foreclosure auction. In 2022, Greenland defaulted on $350 million worth of loans tied to the sites from Nick Mastroianni’s U.S. Immigration Fund, which raised the capital through the cash-for-visas EB-5 program. Fortress Investment Group also owns a stake in the debt.
Pacific Park, formerly known as Atlantic Yards, was first announced more than 20 years ago. The project faced years of litigation, construction mishaps and financial hardships, in the form of global economic crises and distress within the balance sheets of the development firms leading the project.
Cirrus’ portfolio of projects has grown rapidly in the past year. Last year, Cirrus reached a deal with the Building and Construction Trades Council and City Hall to invest in multifamily workforce housing and redevelopments by pooling pension funds from more than a dozen construction unions. Since then, the company has also announced that it will partner with Resorts World Casino New York City to build 50,000 housing units over the next 20 years. Last week, the city tapped Cirrus and LCOR to build 3,000 housing units at a former airport in Queens.
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