The Real Deal New York

Atlantic Yards valued less than Forest City projected

December 11, 2013 11:06AM

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.

Forest City intends to “take a write-down of $250 million to $350 million on the development,” the Wall Street Journal said, because costs were greater than expected.

But Chinese developer Greenland Holdings is close to picking up a 70 percent stake in the 16-tower, $4.9 billion project. The sale is slated to close next year, and should boost the available capital to build the residential component at Atlantic Yards, which broke ground last September.

The stacking of modular units at B2, set to be the world’s tallest modular structure, begins tomorrow.

The development has spurred a slew of other modular projects. Other prefab structures in the works include the Stack, a seven-story, 28-unit residence at 4857 Broadway in Inwood; a four-story modular housing prototype at Cadman Plaza in Downtown Brooklyn as part of the city’s post-Sandy housing program; a nine-story, 55-unit Building On East 27th Street, according to a report by DNAinfo. [WSJ] and [DNAinfo]Mark Maurer

  • Dan Sciannameo

    What nonsense. Residential values have skyrocketed since they made their original projections. I suspect this goes hand in hand with seeking a reduction in their real estate assessments. Maybe they should actually build some residential there. Typical FC nonesense.

  • sol goldman

    Its a game…Just like everything else

  • Moses kestenbaum ODA

    What a farce, sticking the working man , upending thousand of families out of the area then the rich writing it off to the taxpayers .