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December 18, 2008
The Ponz: Madoff Mess Has Real Estate World Reeling
Curbed
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No indication yet that The Bruce himself was invested with Bernie Madoff (Ratner appears to prefer the guaranteed returns of huge public subsidies), but the giant Ponzi scheme appears to have touched at least one of his business partners.
As the names of big-time real estate heavyweights—Mort Zuckerman, Fred Wilpon, Glenwood Management, etc.—continue to trickle out in connection with accused Ponzi schemer Bernard Madoff, we've been awaiting the definitive, air-clearing account of just how bad the scandal has screwed the real estate world (especially since the threats starting rolling in). Today, the Times comes pretty darn close to unleashing that exposé. There are tales of hundreds of millions in losses, developers on the verge of collapse, an array of potentially doomed projects and scores of panicked investors looking to unload their apartments right now—only there are few details given as to the identity of those poor panicked souls. One of the specific examples given is the Blumenfeld Development Group, whose owner "invested heavily" with his close friend Madoff. Blumenfeld is a partner with Forest City Ratner on the flag-waving, Target-sporting hope of East Harlem, East River Plaza. A spokesman for Blumenfeld says the megamall (above) will be completed, but the company's other development plans are uncertain.
Posted by eric at December 18, 2008 11:53 AM