Acadia's City Point in Downtown Brooklyn Continues to Advance with $115.5M Sale of Phase Three to Extell Development Company

Acadia Realty Trust (Acadia – NYSE: AKR) and Washington Square Partners (Washington Square), co-developers of City Point, the 1.9 million square foot, mixed-use development in Downtown Brooklyn, today announced the sale of the project's remaining residential development rights to nationally acclaimed developer Extell Development Company (Extell) for $115.5 million, averaging about $217 per buildable square foot. City Point's Phase 3, a 21,500 square foot parcel, is Extell's first residential development in Brooklyn and is a testament to the evolution of Downtown Brooklyn into a highly desirable, modern and urbane destination. Extell will be developing a 665,000-square-foot tower which will be divided into 600,000 square feet of residential and 65,000 square feet of commercial use at the base of the building. Acadia and Washington Square will retain the commercial portion of Phase 3. "We are looking forward to working with Gary Barnett and his talented team at Extell as we move forward with our partners at Washington Square Partners on Phase 3," said Kenneth Bernstein, President and Chief Executive Officer of Acadia. "Upon completion of construction, Extell's acquisition of Phase 3 will reflect the culmination of City Point's development plan and serves as the capstone to working with the City of New York and the New York City Economic Development Corporation in executing New York City's 2004 Downtown Brooklyn Plan." Extell's tower will be located on Willoughby Street between Gold Street and Flatbush Avenue Extension, joining BFC Partners' and Acadia/Washington Square Partners' 250-unit mixed income, rental development (7 DeKalb Avenue) and the Brodsky Organization's 430-unit luxury, rental tower (City Tower). Phase 3's commercial base will connect directly with the rest of the project's commercial base. "We are thrilled to be entering the Brooklyn market," said Gary Barnett, president of Extell Development Company. "With City Point leading its transformation, Downtown Brooklyn has emerged as one of the strongest neighborhoods in the borough. We believe that an Extell building with high caliber design and amenities will be very well received." Construction is slated to commence in 2017 with an anticipated completion date of 2020. Bernstein continued, "Once complete, the tower will be one of the most prominent residential buildings in the borough." Maintaining the project's "By Brooklyn, For Brooklyn" philosophy, Phase 3 will be developed with an emphasis on community involvement. To date, more than $40 million has been dedicated to a substantial number of local, minority and women-owned businesses who have participated in the development and construction of City Point. At completion, City Point will have created more than 3,200 construction jobs and over 1,500 permanent jobs. Major retailers like Century 21 Department Store, CityTarget and Alamo Drafthouse Cinema have already committed to City Point. Most recently, Anna Castellani, president of Local Culture Management, announced that she will be opening DeKalb Market Hall, a 26,000-square-foot food destination, in early 2016. For more information about City Point, visit the website at http://citypointbrooklyn.com/