“If we’re able to consummate this with Greenland we would be able to deliver the housing and the balance of the project more quickly,” Linton said in an interview. Greenland’s interest in the deal suggests “worldwide recognition of how strong the Brooklyn market is.”
The investment is the largest of its kind by a Chinese developer in the U.S., Greenland said in an e-mailed statement. Financial terms of the transaction weren’t disclosed.
Rising RentsBrooklyn apartment rents are soaring and investors are racing to partake in that income by acquiring multifamily buildings. In September, rents in the borough climbed 10 percent from a year earlier to a median of $2,800, the second-highest in five years of record-keeping, according to New York appraiser Miller Samuel Inc. and brokerage Douglas Elliman Real Estate.
Purchases of multifamily properties in Brooklyn totaled $1.17 billion in 2012, up 23 percent from the previous year and the most since 2006, according to research firm Real Capital Analytics Inc. Sales this year are on pace to match that, with about $897 million of buildings changing hands through September.
“They want to build as quickly as possible to capitalize on how strong the market is,” said Samit Parikh, an analyst with ISI Group in New York, who rates Forest City a strong buy. “Brooklyn rents are rising quickly. There’s a huge gentrification happening. They understand this is a great opportunity to get this going right now.”