Greenland paid the MTA for Vanderbilt Yard development rights through June 2023. Now it's a mystery. Is all stalled until Related makes its bid?

Developer Greenland USA is current on payments for Vanderbilt Yard development rights--well, sort of.

Greenland, through June 2023, had paid the Metropolitan Transportation Authority cumulatively $96 million towards development rights towards six towers over the MTA's Vanderbilt Yard, with an additional $77 million due, in annual $11 million increments, by June 1, 2030.

That's per a schedule outlined in 2009, when original developer Forest City Ratner renegotiated the original 2005 pledge of $100 million into $20 million for the railyard parcel needed for (part of) the arena block, and $80 million for the remainder, payable through 2030 at an implied 6.5% interest rate, which one analyst called "a real coup." 

By my estimate, as explained below, the payments may have been enough to purchase the rights to build the first three towers, with the remainder should cover the final three towers. 

It’s unclear whether Greenland can realize any value for that investment, given the foreclosure auction with the entities holding those development rights.

Why the delay?

Greenland, the MTA told me June 27, has not yet paid on June 1, 2024 but was within a contractual grace period. How long is that grace period? They wouldn't say.

(I asked two days ago for any update, didn't hear back.)

But that implies some deal may be pending. 

After all, a new developer, reportedly The Related Companies, is in talks with the entity controlling the foreclosure auction for rights to those six towers.

If Related ultimately might take over, why should Greenland pay?

Payments so far

According to a 2009 MTA document summarizing payments, a down payment of $2 million a year for four years, starting in 2012, was to be followed by 15 annual installments of a little more than $11 million, commencing on June 1, 2016.

That implies cumulative total payments of approximately $96 million by June 1, 2023.

By my calculation, Greenland's payments should have taken care of the air rights on Block 1120, the first of the two railyard blocks, which would support the towers designated B5, B6, and B7.

My estimate is based on the square footages in this document.

Those three buildings make up about 52% of the approved square footage over the two railyard blocks, while B8, B9, and B10 make up about 48%. So 52% of $173 million is nearly $90 million.