February 18, 2009
As Other NYC Projects Falter, Atlantic Yards Still on Track
Commercial Property News Online
by Barbra Murray
Amid a flurry of announcements of delayed projects in New York City, Forest City Ratner Cos. has orchestrated the $161.9 million refinancing of a loan connected to its $4 billion Atlantic Yards project in Downtown Brooklyn. Gramercy Capital Corp., which made the original loan to Brooklyn-based FCRC for the purchase of land for Atlantic Yards, provided the refinancing along with a group of co-lenders.
The project site is in Prospect Heights, not Downtown Brooklyn.
Timing of the deal was just right, as the loan was scheduled to be repaid this month; the new loan is due in February 2011.
While FCRC was successful in arranging a big refinancing transaction in the midst of one of the most challenging economic periods in memory, the company concedes that its drive to move forward with Atlantic Yards has not gone unhindered. "The economy has impacted all development activity--certainly tenant interest and the ability to access credit markets--and we certainly aren't immune to that," a spokesperson told CPN. And there are other issues preventing the Atlantic Yards project from progressing smoothly. "There are a couple of lawsuits pending by the opposition, but we've cleared many hurdles on that front and are confident that we will be able to clear the remaining hurdles."
NoLandGrab: It's rare for Forest City to mention the economy as an obstacle before lawsuits they usually claim the latter are the only things standing in their way.
Posted by eric at February 18, 2009 11:23 AM