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February 4, 2009

NY Hudson Yard developer gets extension on deal

Reuters

NEW YORK, Feb 3 (Reuters) - New York's Metropolitan Transportation Authority on Tuesday has given the partnership developing its 26-acre midtown Manhattan rail yards up to another year to finalize a deal, citing the credit crunch.

The Related Companies, a private developer, and investment bank Goldman Sachs and the authority are all still committed to the $1 billion project for apartments and office space, the MTA said in statement.

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Atlantic Yards Report, MTA shows flexibility on Hudson Yards deal; would it offer same to Forest City Ratner?

Norman Oder maps out the implications for Bruce Ratner's deal for the Vanderbilt Railyards:

Asked whether the MTA would be flexible with Atlantic Yards developer Forest City Ratner, Sander responded two weeks ago that the agency was always "flexible and thoughtful."

Forest City Ratner has been trying to delay paying the $100 million it would owe the MTA for the Vanderbilt Yard, so the agency's actions yesterday suggest that it may not pressure FCR.

The difference is that the price for the Hudson Yards was much higher, not merely because of differences in size and location, but also because there was a competitive bidding process.

The 2005 sale of rights to the Vanderbilt Yard attracted only one other bidder, given that the RFP was issued 18 months after Forest City Ratner was anointed the city and state's favored developer.

Posted by lumi at February 4, 2009 5:37 AM