It is unquestionably true that Mikhail Prokhorov's deal to buy the Nets includes a very crucial clause that enables him to walk away if the Nets' move to Brooklyn falls through. What we've heard, though, is that he's so geeked about the idea of owning an NBA team (as well as a prominent U.S.-based business) that he easily could renegotiate the price down if Brooklyn falls through and assume control of the Nets for less money even if the franchise can't extricate itself from New Jersey.As I've suggested, whatever the lure of a new Brooklyn arena, the scarcest commodity is the team.
Pacific Park Brooklyn is seriously delayed, Forest City Realty Trust said yesterday in a news release, which further acknowledged that the project has caused a $300 million impairment, or write-down of the asset, as the expected revenues no longer exceed the carrying cost.
The Cleveland-based developer, parent of Brooklyn-based Forest City Ratner, which is a 30% investor in Pacific Park along with 70% partner/overseer Greenland USA, blamed the "significant impairment" on an oversupply of market-rate apartments, the uncertain fate of the 421-a tax break, and a continued increase in construction costs.
While the delay essentially confirms the obvious, given that two major buildings have not launched despite plans to do so, it raises significant questions about the future of the project, including:
if market-rate construction is delayed, will the affordable h…