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October 8, 2009
"Different opinions," different facts; finding more gaps in the KPMG market study of Atlantic Yards
Atlantic Yards Report
Norman Oder's first look at the KPMG "market" "study" covered the report's astronomically high real estate value projections and totally bull-sh*t made up sales figures for existing projects.
Today, Oder compares the KPMG report (released yesterday by the Empire State Development Corporation) to the Kahr report (commissioned by Council of Brooklyn Neighborhoods) and stumbles over some more "gaps" in the KPMG doc.
Here, perhaps, is the most significant fabrication of the market study commissioned by the ESDC and Ratner:
Yesterday I pointed out that KPMG said that only a "modest inflation factor" could lift the average of $950/sf high value for condos (in three neighborhoods) to the $1217/sf Forest City Ratner expects in 2015.
Well, first consider that the $950/sf may not be a fair comparison, given that it's skewed by the stratospheric prices of the not-so-well-selling On Prospect Park, by Richard Meier.
Second, consider that an inflation factor of 5%--not so modest--would bring $950/sf to $1212/sf over five years. (It would actually be five years and nearly four months until that first condo building opened on 2/1/15.)
NoLandGrab: We repeat, if the Atlantic Yards project is so great, then must the developer Forest City Ratner, the ESDC, and every study they have commissioned have to stray so far from the truth to make it appear viable?
Posted by lumi at October 8, 2009 6:16 AM