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December 19, 2006
Fitch Affirms Gramercy CRE CDO 2005-1
BusinessWire
Here's a little info on Bruce Ratner's first loan for Atlantic Yards from a press release on Fitch Ratings assessment of Gramercy Capital:
The largest loan in the pool (8.5% of the current pool) is a first mortgage on Atlantic Yards, a land assemblage in Brooklyn. The strategy for this asset is to acquire the necessary parcels (currently improved with residential, commercial and industrial properties) for development of an 800M sf (19,000 seat) arena for the New Jersey Nets and a mixed-use development that includes office, residential and retail space. During Q4 2004, the loan commitment was increased and in Q2 2006, Gramercy syndicated a portion of the increased loan amount to two institutional investors. To date 89% of the total committed loan has been funded. As of Q3 2006, the asset is meeting original underwritten expectations as the continued acquisition of identified parcels and approval hurdles progress. The borrower, Forest City Ratner, has reached a Memorandum of Understanding with the City, State, and MTA to acquire certain key development rights and receive public funding for the infrastructure improvements. The project was recently approved by the Empire State Development Corp, which authorized the option of eminent domain if needed to acquire any of the final properties identified for the master planned footprint. The remaining funding will be used to acquire outlier sites, which are not critical to the footprint.
NoLandGrab: Since Bruce Ratner rarely tells the public what he's up to (unless it's Bring Vince Carter to School Day), we have no idea what "outlier sites" the developer intends on acquiring — maybe your home, or maybe just next door.
Posted by lumi at December 19, 2006 7:29 AM