Russian billionaire Mikhail Prokhorov, who is on the verge of a $200 million deal to buy the New Jersey Nets from Atlantic Yards developer Bruce Ratner, is coming under scrutiny for his close business ties to Zimbabwe, according to the Post. New Jersey Rep. Bill Pascrell has called for a government inquiry into whether the Prokhorov-owned companies in Zimbabwe violate federal laws that prohibit American citizens and companies from doing business with dictator Robert Mugabe. Prokhorov’s Renaisance Capital has interests in the Zimbabwean stock exchange, among other investments in the country. Renaissance is also closely tied to Prokhorov’s Onexim investment fund — the one behind the imminent Nets takeover that will bring the basketball team to Ratner’s new Barclays Center in Atlantic Yards. “[The Nets deal is] being financed partly by the taxpayer, and the public has a right to know,” said Pascrell, who wants the Treasury Department to investigate Onexim. The NBA, whose vetting process for Prokhorov is already complete, last week announced that it would delay a scheduled Friday vote on the deal because of the stall tactics of residents living in the footprint of the new Nets arena, which is to be taken over by the state through eminent domain. [Post]

Developer Bruce Ratner and a rendering of the Barclays Center at AY

There are a few holdouts left in the footprint of the New Jersey Nets’ new home in Downtown Brooklyn, and despite losing their bid to block the state’s use of eminent domain to boot them from the site, they’re still not going down without a fight. Last month, the state sent letters to the home and business owners saying they had to leave by April 3. The letters were ignored because the state hadn’t yet paid for the seized land, so eviction proceedings couldn’t get off the ground, plus, the holdouts are challenging the value of the properties. Evictions could take months, and in the meantime, the residents are holding up the sale of Bruce Ratner’s majority stake in the Nets to Russian billionaire Mikhail Prokhorov. The NBA Board of Governors announced yesterday that it would indefinitely postpone a scheduled April 16 vote on the sale until “a firm date is set for the state of New York to take full possession of the arena site.” Ratner broke ground on the new $800 million Barclays Arena in Atlantic Yards last month and is looking to move the team there by 2012. [Post]

The Nets and the team’s new home at Prudential Center in Newark

The New Jersey Nets have reached a long-anticipated deal to move to Newark’s Prudential Center for the next two years, as the team plans for the Barclays Arena to open two years from now at the Atlantic Yards project in Brooklyn.

Newark Mayor Cory Booker confirmed the deal following a special session of the New Jersey Sports and Exposition Authority this morning and furious negotiations to finalize talks with the Prudential Center officials.

“It’s extraordinarily exciting,” Booker told The Real Deal in a telephone interview. “Not only will it bring economic opportunity, energy excitement to our downtown, for the Nets they are going to receive one of the most exciting fan bases they’ve had in years and years.”

The deal ends months of speculation about the Nets, who have struggled to draw fans to the East Rutherford arena after the New Jersey Devils ditched the former Continental Airlines arena for Newark. [more]

A rendering of the Barclays Center and Bruce Ratner

Developer Bruce Ratner has closed on his controversial Atlantic Yards project, and the site has been readied for construction, but there is yet another hurdle for him to clear before the project can become a reality, public documents show. Ratner must raise $324.8 million within a year for the new Barclays Center, or be forced to refund the $511 million in tax-free bonds that have been sold to finance the project. The funds, referred to in the documents as the “additional rent amount,” must be deposited by Dec. 17, 2010. Forest City Ratner “expects to raise sufficient funds,” and signs point to that being a practical goal. Russian billionaire Mikhail Prokhorov is planning to pony up $200 million for an 80 percent stake in the Nets and a 45 percent stake in their new arena. Prokhorov has also agreed to cover at least $60 million in losses by the team until construction on the Barclays Center is complete. A Forest City Ratner executive recently said that the developer expects to contribute another $200 million in equity to the project. [NYO]

Russian billionaire Mikhail Prokhorov may be closer than ever to achieving his dream of owning an American basketball team. The metal tycoon took to his blog in September to express his desire to become the controlling shareholder of the potential New Jersey Nets. Now, Prokhorov and the Nets ownership have reportedly reached an agreement that would sell 80 percent of the team and 45 percent of the new arena to the Russian billionaire. Prokhorov’s interest in the Atlantic Yards development has drawn ire on both sides of the globe, with high-profile Russian leaders calling his potential investment “unpatriotic” and Atlantic Yards opponents speculating that Prokhorov’s funding suggests fiscal weakness in the Forest City Ratner Companies team. The deal is still subject to approval from the NBA Board of Governors, according to USA Today.

When Bruce Ratner begins selling $500 million in tax-free bonds to finance the Barclays Center in his Atlantic Yards development, as he is expected to do by the end of the week, he will now be able to lure sponsors with the bonds’ investment grade-rating from Moody’s Investor Service. The “Baa3″ rating, announced today, means the New York media market is expected to generate high demand for Forest City Ratner’s new $1.06 billion, 18,000-seat Nets arena, which is slated to open in time for the 2011-2012 basketball season. Moody’s also cited the developer’s strong reserve funds and large amount of equity for the project as reasons for its favorable rating. Earlier this year, Forest City announced it would sell an 80 percent stake in the Nets and a 45 percent stake in the arena to Russian billionaire Mikhail Prokhorov, in order to raise cash for stadium. The news comes fresh on the heels of last week’s eminent domain ruling, largely believed to be the last major hurdle for Ratner’s controversial Atlantic Yards project, which allowed the state to seize property on the site for use in the development. [Crain's]

With Russian billionaire Mikhail Prokhorov reportedly in talks to purchase the New Jersey Nets — and subsequently help finance Bruce Ratner’s massive Atlantic Yards development — the owners of high-end Brooklyn condos are vying for his attention. The managers of two properties, one the famous $25 million Clock Tower penthouse at One Main Street in Dumbo and the other a $7.5 million Brooklyn Heights penthouse at One Brooklyn Bridge Park, got in touch with Prokhorov’s representatives this week to pitch units to him for purchase, the New York Post reported. The developers of both properties referenced the Russian oligarch’s love of parties as a main selling point for their respective penthouses. “You don’t get any better than a 1,000-square-foot roof deck … to hold parties,” Ian Levine, COO of RAL Companies, which manages the 4,638-square-foot One Brooklyn Bridge Park spot, said. But David Walentas, developer for the Clock Tower spot, said that his place is unrivaled in its party appeal. “The second I heard Prokhorov was buying the Nets, I knew this space was made for him because he’s known for throwing some incredible parties,” Walentas said. There is no word yet on whether Prokhorov has picked a favorite, or if he’s even planning to move to Brooklyn.

More Russian property buyers are looking for New York City real estate, according to an analysis of Russian investment trends by the Moscow Times. High-profile investors, such as Mikhail Prokhorov, who has been pursuing a $200 million deal with Atlantic Yards developer Bruce Ratner, have reportedly ramped up interest among Russian real estate buyers. The trend has caught some brokers, like Wilbur Gonzalez of Brown Harris Stevens, by surprise. “I expected the Russians to sit out 2009 and 2010, licking their wounds,” Gonzalez said. While some expect real estate prices in New York City to fall further, industry experts say that Russians investors are drawn in by the weak dollar and are viewing New York real estate for its long-term value.

Developer and current New Jersey Nets owner Bruce Ratner will soon sell $700 million in tax-free bonds to fund a new basketball arena for his team, he said earlier this week. The bonds must be sold before the Dec. 31 Internal Revenue Service deadline. The news comes on the heels of a deal between Ratner and Russian metal tycoon Mikhail Prokhorov, under which Prokhorov’s holding company, Onexim, will provide $200 million in financing for the arena. In exchange, Prokhorov will receive an 80 percent stake in the Nets, a 45 percent stake in the arena, and an option on 20 percent of the rest of Ratner’s Atlantic Yards project, valued at $4.9 billion.

Russia’s richest man, metal tycoon and billionaire Mikhail Prokhorov, took to his blog this week explaining his interest in financing the new Nets basketball arena. But high-profile Russian politicians are speaking out about Prokhorov’s potential involvement with Bruce Ratner’s Atlantic Yards development. Aslambek Aslakhanov, a Russian parliament member specializing in the nation’s sports programs, said that Prokhorov should be focusing his attention on Russian developments. “I can’t consider this action as anything other than unpatriotic,” Aslakhanov said. “We also have talented children here, but sports isn’t being developed. They’re not trying in order for us to return to our former sports ranking of best in the world.” Under Prokhorov’s agreement, which has been tentatively settled, his holding company, Onexim, would provide $200 million for construction financing, in exchange for the controlling shares for the soon-to-be-Brooklyn Nets.