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June 12, 2009

What could $20 million buy? Apparently a smaller plot in Sheepshead Bay

Atlantic Yards Report

While Forest City Ratner is desperately trying to convince the Metropolitan Transportation Authority to accept $20 million up front for the arena-portion of the Vanderbilt Railyard, instead of the full $100 million, Norman Oder is attempting to put things in perspective by exploring what $20 million will buy you these days.

In November 2007, according to the Real Deal:

White Plains-based developer Arcadia Realty Trust bought a two-acre site in Sheepshead Bay last November for $20 million with plans to build a mixed-use project with 300,000 square feet of retail space.
...

Is this "great piece of real estate," to quote Forest City Enterprises CEO Chuck Ratner, really worth less per acre than a couple of acres in Sheepshead Bay where a much smaller project is destined?

article

NoLandGrab: Interestingly, while the Ratners are trying to low-ball the up-front payment to the MTA, the property valuations for other land in the arena site are skyrocketing. This move is in anticipation of the triple-tax-exempt bond offering, the size of which is tied to the value of the land.

Posted by lumi at June 12, 2009 5:04 AM