Forest City Ratner races an "uncertain rental market" for the high-priced units in the Beekman Tower, it has leased only 45% of its Ridge Hill mall in Yonkers, and, as we know, it hasn't been able to start housing at Atlantic Yards. The Journal reports:
The company's drive to build cash was underscored last week when it announced completion of a months-long deal to sell off a 49% stake in $852 million worth of retail properties. Forest City also announced its president, Joanne Minieri, was leaving the company to start her own firm.I suggested that Minieri's departure also was a way to save money.
About that railyard
The Journal reports:
In November, Forest City asked New York City officials for an additional $10 million in subsidy to help start a residential tower at Atlantic Yards. The city turned it down. The developer also must put in tens of millions of dollars toward a rail yard it pledged to build at the site to replace a former rail yard where the arena will sit.Remember, that replacement railyard is far smaller (and perhaps $100 million less costly) than the one the developer originally pledged.
Also, the cost of the railyard was factored into the low cash component of the bid--$100 million, less than half the appraised value.
Extending the loan
The article closes with this cryptic paragraph:
For Atlantic Yards, Ms. Gilmartin said the firm has improved its situation by extending a large loan recently, and it hopes to start the housing this year.That sounds like they're using the money raised by EB-5 investors seeking green cards, as the Times earlier reported.
How does extending that loan create jobs, as the federal program is supposed to require?