« Forest City in the News | Main | We must build, sez Markowitz »

February 13, 2009

Atlantic Yards IS on the list...

...of building projects that are floundering during the economic crisis. [Emphasis added.]

AP, via International Herald Tribune, Half-built sites cast shadow over NY economy

The half-built sites are powerful examples of how the global economic meltdown has affected the New York construction industry, wiping out thousands of jobs and cutting off billions of dollars in funding. There are a growing number of boarded-up sites as developers lose financing midway through projects.

Experts say the interrupted plans for the city skyline could knock down real estate values, create nuisances for pedestrians and depress thriving neighborhoods.

One of the biggest is Atlantic Yards in Brooklyn, a 22-acre (9-hectare) development where a new arena for the New Jersey Nets basketball team and up to 16 towers are planned. Construction activity stopped in December and won't resume until a residents' opposition lawsuit is resolved. The developer, Forest City Ratner, has delayed closing on a deal to purchase all the land until they have enough financing for the $4 billion megaproject.

The Real Deal, Condo plans collapse
Tallying canceled and stalled projects around the city

During the boom years, developers drew up plans for luxury condominiums across the city at a frenetic pace. Since then, many of those condos have hit troubled waters as a result of the financial crisis, as well as lawsuits, over-saturation of product and an inability to sell or even begin construction, leaving gaping holes at their sites.

To find out what happened, The Real Deal surveyed 57 of these troubled projects in Manhattan, Brooklyn and Queens, comprising roughly 26,500 units. The Real Deal's report, Developers' best-laid plans stymied by recession details the latest status of these developments.

Some developments were able to switch gears quickly and are now successful rentals, like 133 Water Street in Dumbo, or have been reincarnated as other projects, like student housing or a youth hostel. Others, including Forest City Ratner's Atlantic Yards in Brooklyn, Sheldon Solow's East River project, and Swig Equities' 25 Broad and Sheffield57, face more uncertain futures because of lawsuits and financing woes.

Posted by lumi at February 13, 2009 4:42 AM