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Bruce Ratner, chairman and CEO of Forest City Ratner, appeared on Bloomberg Television’s “In the Loop” (see video
on the jump) to discuss the New York real estate market and, of course, his
Atlantic Yards project. The developer said that if the economy tanks
again, and experiences a double dip the city would not come out as
cleanly as it did the first time around. The widespread layoffs being
announced by banks combined with existing budget woes would strain the
city. However, because the city’s economy is more diversified than it
was even five years ago, he still believes it would fare better than
most other markets. [more]

Chinese banks have quietly invested more than $1 billion into New York real estate in the past year, the New York Times reported, as investors pick up luxury apartments and get involved with commercial and residential projects in an effort to diversify their holdings and develop international business relationships.

In the last 12 months, Chinese companies have inked significant leases at the Empire State Building, at 1 World Trade Center, and invested heavily — around $249 million — in Bruce Ratner’s Atlantic Yards. Bank of China also lent $800 million in late 2010 to refinance a building on Park Avenue, the Times said, and doled out $250 million to refinance an office tower at 3 Columbus Circle.

All of these investments seem to pass by without much press attention.  ”It’s truly amazing how much they’ve been able to do without being highlighted in public,” said Dan Fasulo, managing director of Real Capital Analytics. [more]

Islanders star John Tavares and a rendering of the Barclays Center

Despite previous reports that the redesigned Barclays Center would be too small to house a professional hockey team, stadium officials are reversing course — just as the New York Islanders appear closer to skating away from Nassau County, Brooklyn Paper reported.

The forthcoming home for the Nets basketball team had originally intended to be built for hockey, too — as are most basketball stadiums in the country — but because of financing difficulties that limited the size of the structure, Forest City Ratner officials indicated that it would be too small to house a professional hockey team in April. Instead, the arena would host a handful of collegiate hockey games.

But now Barclays Center CEO Brett Yormack said he would be open to “explore hockey opportunities.” [more]

From the July issue: Becoming successful in real estate is not easy. Not only does it take a stomach for risk, it also takes the ability to bounce back from failed projects — as many are trying to do now.
But once real estate executives achieve a certain level of success, they often seem to branch out to other areas of business.
For a while, the preferred next area seemed to be banking. Then, it was professional baseball and football teams. Now, all bets are off — or should we say on? — as a rush of real estate moguls get into horse racing and gaming, with the properties associated with these activities available at discounts. [more]

Interior renderings of the Barclays Center (credit: SHoP Architects)

While basketball fans will be greeted by some of the best site lines of any American arena, from the looks of interior renderings of the forthcoming Barclays Center released yesterday by Nets officials, those who aren’t keen on the game will enjoy some impressive sites of their own, the New York Post reported.

The arena, set to open at the Atlantic Yards in September 2012, will feature a grand atrium, wide concourses with views of a practice court and several unique lounges and bars. [more]

Panels of the steel facade are set to be installed on the Barclays Arena in Atlantic Yards tomorrow, according to the New York Times, but while the arena moves closer to its September 2012 opening, the other 16 buildings at the site are still marred in controversy. In fact, no plans for any of those buildings have been finalized.
Last week, a State Supreme Court judge ruled that the project was subject to another environmental review, as the construction timeline for the second phase of the project was extended to 25 years. And the first phase is short of financing. [more]

Despite criticisms and delays, executives at Bruce Ratner’s Barclays Center in Prospect Heights, Brooklyn have turned their attentions to ensuring that the arena makes a sufficient profit and, despite competition from Madison Square Garden and the Prudential Center in Newark, it’s having no problems meeting preliminary goals, according to CEO Brett Yormark.
According to Crains, the $1 billion stadium already has 163 events booked for its first year, including 44 Nets games, tennis and boxing events, the Ringling Bros. circus and “Disney on Ice.” In addition, sales of the 4,400 premium season ticketshave “exceeded” expectations, Yormark said.
“Both in tickets sales and dollars, Brooklyn is voting yes,” he said, noting that 41 percent of the all-access tickets have gone to residents and businesses in the area. [more]

New York’s development agency should have done a more thorough environmental review of Bruce Ratner’s Atlantic Yards basketball arena and housing project before approving it in 2009, a Supreme Court judge ruled yesterday. The ruling is unlikely to disturb construction at the $4.9 billion project’s first phase, the Wall Street Journal reported, but the judge did request a second review of the second phase.
The ruling is a blow to Empire State Development, which approved the use of eminent domain to allow for the controversial Brooklyn development in 2006.
A spokesperson for ESD said it “believes that it complied with all laws applicable to the project.” [more]

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From left: David LaRue of Forest City Enterprises, 8 Spruce Street and DKLB BKLN

Forest City Enterprises and National Real Estate Advisors announced agreements to restructure the financing at 8 Spruce Street, the Frank Gehry-designed 76-story rental tower in Lower Manhattan and at DKLB BKLN the luxury tower in Fort Greene, Brooklyn, saving the companies hundreds of millions of dollars in debt payments.
The development is key for Forest City, the parent firm of Forest City Ratner, as this $876 million rental tower, formerly known as the Beekman, was under pressure to bring in enough renters to become profitable in a market that is just getting its sea legs.

“By extending the bank credit facilities, it allows for additional time for economic conditions and rents to further improve before refinancing is necessary,” said David LaRue, CEO of Forest City Enterprises, in a statement. [more]

Two more holdouts are standing in Bruce Ratner’s way at Atlantic Yards, except in this case, the developer doesn’t want to evict them, he just wants them to let him onto their properties in order to do a little underground construction work. According to the Daily News, the state is taking two Atlantic Avenue businesses — museum and trade show shop Global Exhibition Services and a Storage Mart — to court to force them into letting Ratner install underground steel cables known as tie-backs beneath their buildings, a necessary step for finishing the Carlton Avenue bridge portion of the project. The businesses have thus far rebuffed Ratner’s efforts for fear of property damage, but the state is arguing that eminent domain would allow it to condemn the properties if it had to in order to get the work done. Comments

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