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January 12, 2011

The new Downtown Brooklyn skyline, the rezoning gone awry, and yet more proof KPMG's report to the ESDC was bogus

Atlantic Yards Report

The more we learn about the state of condo sales in Brooklyn, the more Arthur Andersen's, er, KPMG's "market report" "justifying" the Atlantic Yards project looks like a total joke — except the joke's on us.

I'm coming a little late to the 1/9/11 cover story in the New York Times's Real Estate section, headlined Suddenly, a Brooklyn Skyline, but it's worth another look, for its slant and its omissions.

Notably, the nearby public housing is ignored and the main justification for the rezoning that led to the towers--an expected need for office space--is downplayed.

And--no surprise--there's no mention of the discrepancy between the sales figures revealed in the article and the ones consultant KPMG ginned up for an 8/31/09 report to the Empire State Development Corporation on the housing market in Brooklyn--a report used to justify the unrealistic ten-year Atlantic Yards buildout.

Sales figures vs. KPMG

According to the Times, Oro was more than 50 percent sold before the building was finished but, "[b]y September 2009, the building was only 28 percent sold." That led to price drops. Now its about 70 percent sold.

Funny, but KPMG claimed on 8/31/09 that the Ora was 75 percent sold. Not even close.


Posted by eric at January 12, 2011 10:42 AM