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February 13, 2008
As Costs Grow, NYC’s Grand Redevelopment Plans Shrink
Associated Press, via Brooklyn Daily Eagle
By David Caruso
For a while, it seemed the sky was the limit for the grand public works that sprang off the drawing boards during New York’s recovery from the Sept. 11, 2001, terror attacks.
Lately, though, soaring ambition has given way to hard reality.
...
Forest City officials have since sought to dispel any idea that the Frank Gehry-designed Atlantic Yards project is in trouble, saying the court filing was intended to persuade a judge to resolve the legal dispute quickly.Indeed, Richard Moore, a real estate analyst for RBC Capital Markets, said there have been no signs that problems in the financial markets will put a crimp in Atlantic Yards or other private development in the city.
Demand for new housing and office space remains high, he said, and banks are still willing to make loans to proven developers.
“The capital seems to be out there,” he said. “It is definitely more selective capital,” he added, but even in a recession it could take time for job losses and company downsizing to cool the market.
NoLandGrab: "The capital seems to be out there," doesn't "seem" to inspire confidence, and regardless, that's not what we're hearing. Capital has dried up and what little capital that's floating around can be had at a premium, putting the squeeze on megaprojects like Atlantic Yards.
Posted by lumi at February 13, 2008 4:42 AM