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March 22, 2010
It came from the Blogosphere...
Brownstoner, Forest City Misses Metrotech Mortgage Payment
Crain's reported on Friday that Forest City Ratner had missed a payment on its $52 million mortgage at 10 Metrotech, which, oddly enough, isn't in the Metrotech Center but a few blocks away at 625 Fulton Street; the building counts both the IRS and Human Resources Administration as tenants. The irony of the developer embarking on a $5 billion project at a time when it can't make a payment of what can't amount to more than a few hundred grand was not lost on the folks at Develop Don't Destroy.
NetsDaily, SBJ: Prokhorov Could Wind Up Paying $700 Million for Nets
Buried in a story on team values, a Sports Business Journal chart suggests that by some estimates the price tag for Mikhail Prokhorov's Nets purchase "could be worth up to $700M". SBJ didn't break down the number, but the $700 million figure appears to be much higher than any previous estimate.
As reported, Prokhorov's Onexim Group has agreed to put down $200 million in cash; assume about $180 million in franchise debt from Forest City Enterprises, Bruce Ratner's parent company; eat $60 million in costs--including losses--sustained while the team remains in New Jersey; and purchase up to $106 million in junk bonds needed to finance Barclays Center infrastructure, for a total of around $550 million. In return, Onexim receives 80% of the team, 45% of the arena and an option to purchase up to 20% of the overall Atlantic Yards project in downtown Brooklyn.
NoLandGrab: Those Barclays Center infrastructure bonds are not yet sold, and with Forest City's missed Metrotech mortgage payment, they won't be looking any sweeter. Earlier reports have indicated that Prokhorov wants no part of those bonds.
NetsDaily, "Brooklyn Nets" or "New York Nets"? Mayor Won't Comment
The new renderings of Barclays Center have the words "Brooklyn Nets" emblazoned at either end of the court. Marty Markowitz, Brooklyn's Boro President, and Bruce Ratner, the outgoing owner, have called them the "Brooklyn Nets" But Sports Illustrated's Ian Thomsen, who broke the story of Mikhail Prokhorov's interest in the team, has twice written the team will likely be "rebranded" the "New York Nets."
Posted by eric at March 22, 2010 10:43 AM