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August 21, 2007
Forest City Closes on Largest Construction Financing in Company History – $630 Million Loan for Ridge Hill Mixed-Use Project in Yonkers
Looks like this deal closed just in time. The liquidity crunch may start affecting large-scale transactions as investors no longer have easy access to capital.
CLEVELAND -- Forest City Enterprises, Inc. (NYSE:FCEA)(NYSE:FCEB) today announced that its Forest City Ratner Companies subsidiary has closed on $630 million in construction financing for Ridge Hill regional lifestyle center in Yonkers, New York. The financing marks the largest single construction loan in Forest City’s history and will be provided by Bank of America, ING Real Estate Finance and Key Bank Real Estate Capital.
“Ridge Hill will be a new town square in Westchester County, providing easy access and an alluring environment for the finest living and shopping in the area,” said Bruce Ratner, president and CEO of Forest City Ratner Companies. “Today’s announcement brings us one step closer to making Ridge Hill – and its estimated 9,500 jobs and $60 million annually in tax revenue – a reality for everyone.”
Ridge Hill will be a mixed-use 81.4-acre regional lifestyle center featuring a lively streetscape along its main street with extensive show windows, lush landscaping and abundant trees, and a distinctive Town Square at its center.
Ridge Hill is expected to be comprised of 1.3 million square feet of retail, restaurants, cinema and entertainment space; 1,000 residential units, including 135 affordable units and 200 residences for people over 55 years of age; 156,000 square feet of office and research facilities; and a hotel and conference center.
Preliminary construction, including land clearing and site preparation, began this spring. A formal groundbreaking is expected to take place later this year. Ridge Hill is expected to open in 2009.
NoLandGrab: Bruce Ratner is displaying his financial prowess in this press release. It's meant to be a clear indication to government officials and local activists that the current shakeout in the financial markets and increased cost of financing isn't going to put a wrinkle in his plans, in Westchester or Brooklyn.
Ratner will still be concerned with the cost of bond financing, which is likely to increase and could affect the bottom line for Atlantic Yards. Also, the Ridge Hill deal was obviously in the works before the mortgage-backed security fiasco hit — Atlantic Yards financing might not be as easy to secure as Ridge Hill.
Posted by lumi at August 21, 2007 8:15 AM