Cirrus Real Estate Partners has acquired most of Greenland USA’s debt in the United States, in a move that gives it leverage over the troubled Pacific Park development in Brooklyn. Joseph McDonnell of Cirrus said on Thursday that the company purchased a majority of Greenland’s outstanding debt, valued at $200 million, not including over $300 million related to Pacific Park.
The Pacific Park project, formerly known as Atlantic Yards, was initially planned to deliver 6,400 apartments, including 2,250 affordable units. However, 876 of these affordable units remain unbuilt. Under a 2014 agreement, Greenland was expected to finish these by May 31, 2025.
This week, state authorities approved a joint venture led by Cirrus and LCOR to take over several sites associated with the development. The transfer included six rail yard sites obtained through a foreclosure auction and another site near Barclays Center—referred to as site 5—as well as development rights for a public plaza in front of the arena. These rights were previously intended by Greenland for a larger project at site 5.
Greenland defaulted on $350 million related to the rail yard sites in 2022. The debt had been raised through Nick Mastroianni’s USIF via the EB-5 visa program, and Fortress Investment Group also held an interest. While Greenland, USIF, and Fortress are now part of the new joint venture, they will not manage the day-to-day operations of the project.
According to McDonnell, Cirrus addressed outstanding liabilities by paying architects, engineers, and others who had worked on Pacific Park. Some payments took the form of new debt issued by Cirrus. USIF and Fortress accepted deferred interest in repayment of this new debt, discounted based on their stake in the joint venture and subordinated to Cirrus and LCOR.
Greenland has already invested $950 million into Pacific Park. McDonnell said that acquiring all of Greenland’s U.S. debt allowed Cirrus to negotiate an agreement to move forward with the project. “This project, as everybody knows, has been stuck for a period of time. It was carrying a debt load which was unsustainable even when rates were lower,” he said. “Through the leverage we had over those three counterparties, Greenland, USIF and Fortress, we came in to clean up the structure so that it can hopefully move forward at a quicker pace.”
Greenland first bought into Pacific Park in 2013 with a 70 percent stake and later increased its ownership after Forest City Realty Trust exited the project.
Economic challenges—including China’s slowing economy and changes to overseas investment policy—hit Greenland hard before the pandemic and rising interest rates added further strain. The company attempted to sell off assets in California and sold its Los Angeles Metropolis tower at a $200 million loss in late 2022.
Further details about other debts acquired by Cirrus have not been disclosed.
At Thursday’s meeting held by Atlantic Yards Community Development Corporation—a subsidiary of Empire State Development—McDonnell and LCOR co-chief investment officer Anthony Tortora described their companies’ commitment to building housing accessible to various income levels rather than focusing on condominiums. McDonnell said public investment would likely be needed alongside private funding but did not share specific plans for changing current site plans.
Concerns about project timelines were raised during the meeting; building platforms over rail yards between Pacific Street and Atlantic Avenue could take years before construction begins—possibly not until after 2030. Financing methods similar to those used at Hudson Yards were discussed but no specific subsidy requests were made.
Tortora noted: “The current plan for the rail yards predates the iPhone,” adding that updating plans could help deliver more housing and affordability.
Any changes will require amendments to the state’s general project plan rather than going through New York City’s land use process. Public engagement is expected to begin in November.
Developers agreed to pay $12 million in installments into a fund supporting affordable housing in nearby communities—a payment replacing fines originally scheduled if Greenland missed its May 2025 deadline for delivering affordable units. If developers do not sign an agreement outlining new plans by July 31, 2026, previous fines could still apply.
Michelle de la Uz of the Fifth Avenue Committee said $12 million is insufficient given displacement experienced locally during delays and expressed skepticism toward both developers and ESD: “This is a long time coming. We’re at a critical moment, and there’s obviously decades of distrust and skepticism that need to be overcome.”
Assembly member Jo Anne Simon emphasized concerns about ongoing delays: “My concerns are, we’ve gone a long time without this housing,” she said. “How can we have any faith in what is being done here?”
