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October 10, 2010
In article on Beekman Tower (now 8 Spruce Street), Times papers over construction stoppage and renegotiation; rental price now was sought all along
Atlantic Yards Report
A New York Times story about a Bruce Ratner development is surveyed. Noted is the fact that 8 Spruce Street received a tax abatement under a program meant to provide affordable housing, even though there are no affordable units at this location.
The Times also glosses over the work-stoppage that occurred for this building and that work was only resumed after Ratner negotiated a reduction in labor costs.
There's also some spin from the developer regarding success in gaining top rents -- once that's based on lower rents.
[Forest City Ratner Executive VP MaryaAnne]. Gilmartin said that after looking at other high-end rental buildings, including Silver Towers on West 42nd Street, she thought rents would be at least $80 per square foot per year.
That would put the rent for the smallest unit at 8 Spruce Street — a 450-square-foot-studio — at $3,000 a month.
But Ms. Gilmartin said that if demand was strong enough, there would be no qualms about raising the prices, “even over the course of a single day.”
So they may get the originally sought rent, after lowering costs based on an expected lower rent.
And what Bruce Ratner development would be complete without an extra dollop of Federal subsidies:
As I wrote 4/7/08, covering a conference call with investment analysts, analyst Sheila McGrath brought up the Beekman Tower.
Forest City Enterprises CEO Chuck Ratner asked executives Bob O'Brien and Joanne Minieri to “give Sheila a little color” regarding the “tremendous demand on the part of the banks” for the tax-free Liberty Bonds.
JM: Like a billion-two demand for the 204 [million] that we put out there.
SM: And are all the units in that building, they’re all market-rate units?
JM: That’s correct, Sheila.
BO: That’s the beauty of the Liberty Bonds, tax-exempt rates and all market-rate units.
CR: Thank you, Bob.
SM: Gotta like that.
Posted by steve at October 10, 2010 8:56 AM