« Right of 'eminent domain' challenged: Weighing the benefits of economic development | Main | DDDb Press Release: "Ratner 'Community Benefits Agreement' (CBA) is DOA And Brooklyn Community Board Chairs Helped Kill It" »
November 19, 2004
Gramercy Capital Corp. Announces Financing of Atlantic Yards Project
BusinessWire, Press Release:
"Gramercy Capital Corp. today announced it has originated a $40.5 million mortgage loan to two entities sponsored by Forest City Ratner Companies (FCRC). The loan permits FCRC to acquire various residential and commercial buildings in Brooklyn, New York. The bridge loan from Gramercy will be repaid prior to development of the arena. The City and State of New York have each publicly announced their support for the development plan. [emphasis added] Andrew Silberfein, Executive Vice President and Director of Finance for FCRC, stated, "Gramercy Capital Corp. became involved in this project in the earliest stages of the development and understood our business plan and vision in a way that traditional lenders could not."
It looks like Ratner has been forced to seek a "bridge loan" for the purchase of properties in the footprint from a non-traditional lender. On the heels of the Pace debacle and difficulty with raising money for the purchase of the NJ Nets, this release will add fuel to the rumors that Ratner has money problems.
The statement that the City and State have "publicly announced their support" is just plain wrong, since they haven't.
Posted by lumi at November 19, 2004 8:07 AM