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February 1, 2010

Another reason not to trust the KPMG report to the ESDC on the housing market

Atlantic Yards Report

There's yet another reason not to trust the report (dated August 31) that KPMG delivered to the Empire State Development Corporation on the housing market in Brooklyn.

Remember, the report claimed that Richard Meier's On Prospect Park was 75% sold. However the New York Times reported September 27 that the developer asserted that half of the units had been sold and the web site StreetEasy.com documented only 25 closings.

KPMG also claimed that the Oro Condos in Downtown Brooklyn were 75% sold. That didn't ring right.

In September, Crain's reported that prices at Oro had been slashed 25%. And yesterday the New York Times reported that the building is 44 percent sold.

Why does this matter?

Because the ESDC relied on the "expert" KPMG to validate its dubious estimate that the Atlantic Yards housing could be absorbed in a decade, a crucial defense in the case challenging the ESDC's approval of the 2009 Modified General Project Plan and the failure to issue a Supplementary Environmental Impact Statement (SEIS).

The information on Oro further undermines KPMG's expertise.


Posted by lumi at February 1, 2010 4:10 AM