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August 6, 2009
A "great piece of real estate": Real Deal suggests Ratner got a good deal on the railyard because of financing, not price
Atlantic Yards Report
Norman Oder comments on yesterday's Real Deal article, which identified Atlantic Yards developer Bruce Ratner's deal with the Metropolitan Transportation Authority as a win-win for Bruce Ratner and Bruce Ratner:
It's interesting that, while everyone agrees that the financing was a good deal for Ratner, Schechman suggests that the purchase price may be high in today's market, even though it's well under the appraised value.
Sure, prices have declined and it's hard to get loans. But this is a "great piece of real estate," in the words of Forest City Enterprices CEO Chuck Ratner.
So maybe the appropriate lens is not today's market but, as the New York Times suggested in 1994 in an analogous situation:
A rebounding economy will likely increase its value. It is wiser to walk away than stumble into a giveaway.
Posted by lumi at August 6, 2009 4:54 AM