Nassau Coliseum shutdown throws wrench into RXR project

Rechler conveys confidence as Prokhorov looks to offload arena’s lease, loans

TRD TRI-STATE /
Jun.June 17, 2020 11:35 AM
Mikhail Prokhorov and RXR Realty's Scott Rechler (Getty)

Mikhail Prokhorov and RXR Realty’s Scott Rechler (Getty)

Billionaire Mikhail Prokhorov is closing Long Island’s Nassau Coliseum indefinitely, citing Covid-19.

Prokhorov’s company Onexim Sports and Entertainment operates the venue under a lease and is seeking investors to take it over, along with about $100 million in loan obligations, Bloomberg reported.

“The unforeseeable and unprecedented Covid-19 crisis has had a devastating effect on the operations of the Coliseum and its finances,” the company said in a statement to Bloomberg. “While we still believe in the enormous long-term economic value of the Coliseum and the development of the surrounding land, we recognize that such value will be best realized by other parties.”

If investors don’t come forward, Onexim could surrender the Coliseum’s lease to its lenders.

Last year, Alibaba co-founder Joseph Tsai was reportedly in talks to buy the Coliseum and Brooklyn’s Barclays Center from Prokhorov.

The arena’s closure and Onexim’s shopping of its lease puts Nassau Hub, a development of the surrounding area with partner RXR Realty, on hold.

RXR’s chief executive Scott Rechler told Bloomberg he is “confident” that the parties that assume Onexim’s lease will want to move forward with the Hub project. Nassau County Executive Laura Curran echoed Rechler, saying that the project is now “even more critical to Nassau’s economic comeback.”

[Bloomberg] — Erin Hudson


Related Articles

arrow_forward_ios
Federal Reserve Chairman Jerome Powell (Getty)

Real estate stocks benefit from second quarter rally

Real estate stocks benefit from second quarter rally
The Seagram Building at 375 Park Avenue with a photo illustration of RFR's Aby Rosen (Getty, Google, iStock)

Aby Rosen to build sprawling gym in Seagram Building

Aby Rosen to build sprawling gym in Seagram Building
Square Mile Capital’s Craig Solomon and Hackman Capital Partner's Michael Hackman with Silvercup Studios at 42-22 22nd Street in Long Island City (Hackman; AAK via Wikipedia Commons)

Hackman, Square Mile in talks to buy Silvercup Studios

Hackman, Square Mile in talks to buy Silvercup Studios
A photo illustration of Quora CEO Adam D'Angelo from a scene in the film The Matrix (Warner Bros./Village Roadshow Pictures; Quora)

“Our HQ will be in the cloud”: What if remote-first work is an opportunity, not a compromise?

“Our HQ will be in the cloud”: What if remote-first work is an opportunity, not a compromise?
From left: Onay Payne, Jim Simmons, Margaret Anadu and Tammy Jones (Payne by Emily Assiran)

‘Your pedigree is always questioned’: Black real estate execs push for change

‘Your pedigree is always questioned’: Black real estate execs push for change
McDonald’s on 220 West 42nd Street (Getty, iStock)

McDonald’s closes Times Square flagship

McDonald’s closes Times Square flagship
William Millichap

William Millichap of eponymous brokerage dies at 76

William Millichap of eponymous brokerage dies at 76
Valentino store on Fifth Avenue and Valentino CEO Jacopo Venturini (Valentino, Nick Hunt/Patrick McMullan via Getty Images) 

Valentino sues to quit Fifth Ave — maybe forever

Valentino sues to quit Fifth Ave — maybe forever
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...