To take advantage of tax benefits, Forest City Enterprises is planning to convert to a real estate investment trust. [more]
Posts Tagged ‘forest city enterprises’
Less than two months after Forest City Enterprises announced plans to sell its 20 percent stake in the Brooklyn Nets, the team’s majority owner, Mikhail Prokhorov, said he will cut back on spending. The team is seeking about $200 million for Forest City’s share, which would peg the value of the NBA team at $1 billion.
Prospective bidders have expressed concerns they would need to cover substantial losses in addition to investing $200 million, the New York Post reported. The team racked up a loss of about $50 million last year. [more]
The $500 million that Forest City Ratner invested in their Atlantic Yards megaproject in Brooklyn may be worth less than half that amount, according to a filing by the developer with the Securities and Exchange Commission this week.
“Clearly, we are disappointed,” said David LaRue, chief executive of Forest City Enterprises. [more]
Forest City Enterprises has been mixing business and politics for the past decade, swapping $23 million in campaign donations for $2.6 billion in government funds, according to a new report cited by the New York Post. [more]
A Brooklyn office building that Forest City Ratner has owned since 1989 is slated for demolition for the development of housing, according to vociferous Atlantic Yards critic Norman Oder, writing for the New York Observer. The seven-story, 359,000-square-foot property dubbed 10 MetroTech Center has a $40 million mortgage that’s in default. [more]
From the December issue: Mayor Ed Koch and other city officials unveiled an agreement with Forest City Enterprises and the Polytechnical Institute of New York to build a $340 million office, retail and research complex in Downtown Brooklyn 28 years ago this month. The City Hall announcement identified Cleveland-based Forest City as the main developer for the MetroTech Center project, which received a 99-year lease and 22 years of tax abatements as part of the deal. In addition, Polytechnical was selected to build a $12.4 million library. [more]
A former Yonkers councilwoman was sentenced to six years in prison for accepting bribes in exchange for her vote on real estate deals, the New York Post reported.
Sandy Annabi, who voted with developers on deals — including the high-end mixed-use development Ridge Hill in Yonkers — was also ordered to pay more than $1.4 million in fines and restitution, the Post said. The shopping and residential center’s developer of that project, Forest City Enterprises, was not charged, according to previous reports. [more]
Forest City Ratner’s Cleveland-based parent company Forest City Enterprises completed more than $300 million in property financings in the quarter ending Jan. 31, 2012, including two worth a combined $163 million in New York City, it announced today.
The company closed a 10-year, $87 million loan for Queens Place, a 455,000-square-foot, five-level retail center on Queens Boulevard. It also purchased the existing $75 million loan at Nine Metrotech, a 317,000-square-foot office building in the MetroTech Center office campus in downtown Brooklyn, and then closed a new 10-year, $63 million loan for the same property. [more]
Forest City Enterprises, developer of the Barclay’s
Center at Atlantic Yards, reported third-quarter losses of $41.9
million, or 25 cents per share, according to a report from
International Business Times. Leasing difficulties at a Florida mall and disposition of an office building in Cleveland were cited as main reasons for the third quarter net loss.
The company saw $4.3 million in losses from vacancies in two Brooklyn
office properties, $4 million
in write-offs from stalled development projects, and $3.3 million in losses
from slower-than-expected leasing at 8 Spruce Street, the Frank
Gehry-designed residential tower. The company said it has
leased 550 of 903 apartments in the building. … [more]
Clockwise from upper left: Daniel Shallit, director of Northeast development at the Sports Authority, Dennis Bachman, a senior real estate representative for Wakefern Food, Bronx Terminal Market, Larry Rose, a principal with advisory firm RK Realty Advisors, Patrick Smith, vice president of real estate for BJ’s Wholesale Club, Michael Shanahan, vice president of real estate at Burlington Coat Factory, and developer Ken Narva
Developers have built too much parking garage space in some of the city’s newest mall developments including the Gateway Center at the Bronx Terminal Market, according to real estate professionals speaking at a panel this morning at the International Council of Shopping Centers New York convention.
Parking floors are sitting mostly empty in some projects even as the overall mall might do well, the retail owners and brokers said.
“What that really tells you going forward is that there is a case to be made that you don’t necessarily need as much parking if it is just urban vertical retail,” said Larry Rose, a principal with advisory firm RK Realty Advisors.
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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]
Joanne Minieri stepped down as president of the New York subsidiary of Forest City Enterprises today, the same day the firm sold 49 percent of its stake in 15 New York City properties. Minieri will continue to advise the New York arm, Forest City Ratner, on major projects, but will launch her own venture geared towards consulting real estate developers and financial services companies.
Minieri joined Forest City Enterprises in 1995 and was promoted to president and COO in 2007. As president she has been closely involved in Forest City’s Atlantic Yards project including breaking ground on the Barclays Center that will be home to the Nets.TRD … [more]
From left: Charles Ratner, 42nd Street Retail and Entertainment Complex, Atlantic Center and Harlem Center
Madison International Realty today said it entered a joint venture to buy a 49 percent stake in Forest
City Enterprises’ 15 retail and entertainment properties in New York City for $172.3 million in cash.
Cleveland-based Forest City, the parent company of Forest City Ratner, said it will retain a 51 percent
stake in the properties and will continue to manage and control leasing at the properties.”Today’s announcement represents both the significant value represented in our mature portfolio and
our continuing ability to create liquidity by monetizing select elements of that portfolio,” Forest City
President and CEO Charles Ratner said in a statement.
Atlantic Yards developer Bruce Ratner is looking to tap into overseas financing for his $4.9 billion project with the help of a federal program that gives green cards to investors in exchange for development capital. According to the Wall Street journal, Ratner is planning a trip to China next month in the hopes of drumming up $250 million in funds through the so-called EB-5 program, which has helped developers who create jobs in struggling areas raise more than $1 billion since its inception in 1990 by enticing prospective financiers with employment-based visas. Following the Brooklyn Navy Yard’s success in seeking $125 million in financing through the program this spring, the city suggested that Forest City Ratner try it, too. The company has thousands of apartments, the new Nets basketball arena and office space planned for the Downtown Brooklyn complex and would be seeking potentially the largest amount ever borrowed through EB-5, pending approval by the federal government for its participation. Ratner broke ground on the $900 million Barclays Center this year and is looking to start constructing its first of 16 Atlantic Yards towers in 2011. [WSJ]
Forest City Enterprises, the parent company of Forest City Ratner, swung to a profit in the fiscal second quarter as rental income rose and the company closed on the sale of the New Jersey Nets to a Russian billionaire. The Cleveland-based firm reported net income of $122.8 million, or 61 cents a share, in the quarter ended July 31, compared with … [more]
A top Bloomberg Administration official has around $5,000 invested in Forest City Enterprises — the developer behind the controversial Atlantic Yards project that’s getting more than $200 million in city funding, in addition to tax breaks, the Post reported. A city financial disclosure report made public yesterday revealed that Howard Wolfson, the city’s deputy mayor for governmental affairs and a former political strategist for Hillary Clinton, listed investments worth between $5,000 and $39,000 in Bruce Ratner’s company, though a spokesperson for the city said the actual value is “close to $5,000″ and thus “far below the threshold that raises potential conflict of interest issues.” Wolfson bought the stock in 2007, three years before he took the job with the city, the spokesperson said. Still, others called upon Wolfson to sell the stock or to put it in a trust until he finishes out his term. [Post]
Saks Fifth Avenue is pulling out of Forest City Enterprises’
controversial Ridge Hill real estate project in Westchester County,
raising further questions about the future of the $685 million
Forest City announced yesterday that Saks pulled out as the anchor
tenant of the project, less than a year from signing a deal to develop
an 80,000-square-foot store at the Yonkers site, making it the chain’s
only store in Westchester County. Saks told The Real Deal that the
developer failed to meet a key provision of the deal.
“Saks Fifth Avenue had signed a letter of intent to be a part of the
Ridge Hill development, but Forest City was unable to secure our agreed
upon list of co-tenants for the development,” said Julia Bentley,
spokesperson for Saks. … [more]
The New York Court of Appeals cleared the way this morning for developer Bruce Ratner to move forward with plans for his $4.9 billion Atlantic Yards project, dismissing opponents’ claims that the state had misused eminent domain laws in securing land for the development. The decision may come just in the nick of time for Ratner, who needs to make a Dec. 31 deadline if he is to receive tax-exempt status on $600 million in bonds for the new 18,000-seat New Jersey Nets arena he’s building at the intersection of Flatbush and Atlantic Avenue. In addition to the arena, Ratner has plans for 16 high-rise towers nearby on the 22-acre lot, with up to 6,430 apartments. While the eminent domain case was likely the last major obstacle Ratner would have to clear before beginning construction, he is facing a slew of other lawsuits, including one filed by some 20 community advocacy groups last month contending that the Empire State Development Corporation and Ratner’s Forest City Companies planned to circumvent the project’s governing document and were refusing to submit a Supplemental Environmental Impact Statement. [NYT]
Bruce Ratner’s controversial Atlantic Yards project may soon benefit from $55 million in federal tax credits. The funds, which have been awarded to Ratner’s company Forest City Enterprises, are part of a $5 billion tax credit package announced by the Treasury Department last week. Though the credit is not earmarked for the Prospect Heights project, Bill Luecht, a spokesperson for the Community Development Financial Institutions Fund, which allocates the money, said it could be used in any low-income area. The Atlantic Yards site qualifies, he said. Forest City Enterprises is currently facing a lawsuit that argues against its right to force out current residents for the development, and also needs to sell $650 million in bonds and break ground before a Dec. 31 deadline for tax-exempt financing. [NYDN]