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December 27, 2007
Real Estate Round-Up
Brooklyn Daily Eagle
By Sarah Ryley
Goldman Sachs analysts this month downgraded the stock of Cleveland-based Forest City Enterprises, according to The Wall Street Journal, which identified the move as “an early sign of the pressure credit markets are putting on big projects.” According to the Journal, “The downgrade said increased borrowing and construction costs are making its development projects less profitable.” Forest City Ratner Companies, the New York subsidiary that developed MetroTech in Downtown Brooklyn, officially announced this month that opening of the arena portion of its Atlantic Yards project would be delayed to 2010, from 2009, noted the Journal.
A Ratner spokesman told the Journal the delay isn’t related to financial markets and that there is no connection between today’s credit market and the project’s potential for long-term profitability. From the view here in Brooklyn, the delay would be most obviously attributed to the myriad of organizing efforts and lawsuits — some still active — launched against the project, some of the efforts with the express intent of delaying its construction or restarting the entire approval process.
Posted by lumi at December 27, 2007 7:54 PM