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April 4, 2011
Ratner Facing New Tests
The Wall Street Journal
by Eliot Brown
When Forest City Ratner broke ground last year on its $904 million basketball arena, it was a sign that one of the most active developers in New York was emerging from a brutal recession.
Now as the real-estate market creeps back, large challenges remain for the Brooklyn-based development firm.
The company's $876 million rental tower in downtown Manhattan designed by Frank Gehry began leasing in February. The developer must lease 903 apartments in an uncertain rental market.
Meanwhile, Forest City, led by Bruce Ratner, has leased only 45% of its Ridge Hill mall, a 1.3-million-square-foot retail complex in Yonkers set to open this spring. And the company has been struggling to raise money for the housing that will accompany the basketball arena.
The company's drive to build cash was underscored last week when it announced completion of a months-long deal to sell off a 49% stake in $852 million worth of retail properties. Forest City also announced its president, Joanne Minieri, was leaving the company to start her own firm.
Mr. Ratner wasn't available for comment.
Posted by eric at April 4, 2011 10:25 AM