Atlantic Yards/Pacific Park Report

Forest City Ratner has agreed to pay just $20 million to the Metropolitan Transportation Authority for the portion of the Vanderbilt Yard it needs to build the Atlantic Yards arena. It initially promised to pay $100 million for the whole railyard. This series attempts to add some context. From the Fourth Quarter 2008 Massey Knakal Sales Journal: A 91’ x 75’ development site at 154 Delancey Street on the Lower East Side of Manhattan was sold by Massey Knakal Realty Services in an all-cash transaction valued at $15,750,000. The property is located on the north side of Delancey between Clinton and Suffolk Streets. Based on the C6-2A proposed zoning (current zoning is C6-1), it contains approximately 47,706 buildable square feet. Recent retail rents on the north side of Delancey have exceeded $125 per square foot, while condo comps are approaching $1,500 per square foot. The property sold for $330.15 per buildable square foot to a well-known hotel developer from Queens. The segment of th...

Forest City Ratner reportedly wants to pay just $20 million to the Metropolitan Transportation Authority for the portion of the Vanderbilt Yard it needs to build the Atlantic Yards arena. It initially promised to pay $100 million for the whole railyard. This series attempts to add some context. From the First Quarter 2008 Massey Knakal Sales Journal : A ten-story storage building at 305 East 61st Street on the Upper East Side of Manhattan was sold... [for] $28,000,000. The nearly 50-foot-wide storage facility is located on the north side of East 61st Street at Second Avenue. Based on its current R8B zoning distinction, the property allows up to 24,849 square feet. However, the building is currently overbuilt with a total of 65,853 square feet above grade. It was delivered vacant at closing. The property sold for $425.19 per square foot to a Manhattan self-storage investor. The segment of the Vanderbilt Yard at issue is 495' x 200' , or 99,000 square feet, more than 50% larger ...

Forest City Ratner reportedly wants to pay just $20 million to the Metropolitan Transportation Authority for the portion of the Vanderbilt Yard it needs to build the Atlantic Yards arena. It initially promised to pay $100 million for the whole railyard. This series attempts to add some context. From the Massey Knakal Third Quarter 2008 Sales Journal: A one-story office building operating as a full service bank at 29-21 41st Avenue in the Long Island City section of Queens was sold... [for] $7,725,000. The 32’ x 70’ building is located in the heart of Long Island City, blocks from the Queensborough Bridge. The main floor consists of office space, conference room and one bathroom. The basement has a walk-in security vault, a conference room, office space, several storage rooms and two bathrooms. The property is situated in the Queens Plaza sub-district of Long Island City, allowing for approximately 73,008 buildable square feet. Currently the property contains approximately 8,664 squar...

Forest City Ratner reportedly wants to pay just $20 million to the Metropolitan Transportation Authority for the portion of the Vanderbilt Yard it needs to build the Atlantic Yards arena. It initially promised to pay $100 million for the whole railyard. This series attempts to add some context. From the Fourth Quarter 2008 Massey Knakal Sales Journal: Massey Knakal Realty Services has sold a 50-foot-wide development site at 124-126 West 23rd Street in Manhattan’s Chelsea neighborhood in an all-cash transaction valued at $19,333,875. The site contains approximately 15,769 square feet and is comprised of two 25-foot wide, five-story loft buildings. It is located near the Chelsea Stratus, a new mixed-use development where only a handful of the 199 residential units remain. As-of-right zoning will allow for the construction of a 44,437 square foot structure. The purchase price included an additional 7,120 square feet of air rights, transferred from a shared zoning lot containing the 15-st...

In a letter sent yesterday, seven elected officials asked Metropolitan Transportation Authority (MTA) Acting Executive Director Helena Williams to delay the June 24 vote to modify the deal with Forest City Ratner for the Vanderbilt Yard, saying a "hasty decision may be detrimental to the needs of the transit system" and that the public and elected officials "should have a fair opportunity to present their views." Rather than pay the full $100 million in cash promised, Forest City Ratner has reportedly offered $20 million for the segment of the railyard needed for the arena block, with the rest to be paid later. Details have not been confirmed. Brennan in the lead The officials are Assemblymembers Jim Brennan (who released the letter; click to enlarge), Joan Millman and Hakeem Jeffries; State Senator Velmanette Montgomery; and City Council Members Letitia James, Vincent Gentile and John Liu. Gentile and Liu do not represent districts near the project footprint; Liu...

Forest City Ratner reportedly wants to pay just $20 million to the Metropolitan Transportation Authority for the portion of the Vanderbilt Yard it needs to build the Atlantic Yards arena. It initially promised to pay $100 million for the whole railyard. This series attempts to add some context. From the Spring 2009 Massey Knakal Sales Journal , covering the second half of 2008: 644 East 14th Street sold : $12.3 milion Neighborhood: Alphabet City Type: Conversion Site Lot Size: 115’ x 88’ Buildable Square Feet: 68,262 The segment of the Vanderbilt Yard at issue is 495' x 200' , or 99,000 square feet, nearly 10 times larger than the Alphabet City site, which is 10,120 square feet. If you multiply the Alphabet City price by 10, it comes out to more than $120 million. The Lower East Side site only supports 68,262 buildable square feet. The Atlantic Yards arena block, of which this segment ( Block 1119, Lot 7 ) would be at least a third, would support an 800,000 square foot arena a...

The discussion about changes at the Metropolitan Transportation Authority's (MTA) Vanderbilt Yard has focused on the quality of the permanent replacement yard that Forest City Ratner (FCR) is supposed to build. But the more immediate question concerns the temporary yard , which would result in diminished capacity, perhaps lingering for years, and could leave the MTA facing some challenges in implementing its crucial East Side Access project, which would bring Long Island Rail Road trains to a new station under Grand Central Station, in a project now scheduled for completion in 2015. To apply a metaphor used regarding the value-engineered Atlantic Yards arena , the permanent yard, which would contain seven tracks rather than the promised nine--and just might contain less storage capacity than the current formation--would be the four-burner stove. But the temporary yard--with less capacity, no long-term guarantee, and exposure to the elements--would be more like an outdoor grill. ...

Forest City Ratner reportedly wants to pay just $20 million to the Metropolitan Transportation Authority for the portion of the Vanderbilt Yard it needs to build the Atlantic Yards arena. It initially promised to pay $100 million for the whole railyard. This series attempts to add some context. The Spring 2009 Massey Knakal sales Journal , covering the second half of 2008, indicates that a 20,000 square foot lot in East New York sold for $3.45 million, to support affordable housing. The segment of the Vanderbilt Yard at issue is 495' x 200' , or 99,000 square feet, 4.95 times larger than the East New York site. If you multiple the East New York price by 4.95, it comes out to $17.08 million. The East New York site only supports 60,000 buildable square feet. Multiple by 4.95 and get 297,000 square feet. The Atlantic Yards arena block, of which this segment ( Block 1119, Lot 7 ) would be at least a third, would support an 800,000 square foot arena and at least 1.5 million sf in d...

[F]or the land, the public land, the MTA land, is that, what we have agreed to is that we will lease or buy that land at the fair market value... by whatever independent process that they normally use. --Forest City Ratner executive Jim Stuckey, New York City Council hearing, 5/4/04 ( transcript ) It's not just that Forest City Ratner (FCR) was awarded the right to develop the Metropolitan Transportation Authority's (MTA) Vanderbilt Yard for $100 million in cash, even though another developer bid $150 million and the MTA's own appraiser valued the site at $214.5 million-- after deducting the cost to a bidder of constructing a new railyard (albeit a more basic one than FCR promised). It's not just that the MTA, after initial resistance , has agreed to let FCR build a replacement railyard of seven rather than nine tracks, a successor to a railyard that once had ten shorter tracks but with (apparently) greater capacity . It's not just that the MTA apparently is being ...

Forest City Ratner reportedly wants to pay just $20 million to the Metropolitan Transportation Authority for the portion of the Vanderbilt Yard it needs to build the Atlantic Yards arena. It initially promised to pay $100 million for the whole railyard. This series attempts to add some context. Here's an example of a lot nearly one-seventh as small that in late 2007 sold for more than half the $20 million sum. From the First Quarter 2008 Massey Knakal Sales Journal : A 187’ x 80’ development site with plans for hotel rooms at 300 Schermerhorn in Downtown Brooklyn was sold by Massey Knakal Realty Services in an all-cash transaction valued at $11,900,000 to a hotel developer and operator... The as-of-right buildable square footage is approximately 83,000 square feet for a mixed-use development project, or 90,000 square feet for a community use property. The site is also located near several mixed-use retail, residential projects, office buildings and is only blocks from one of the s...

Forest City Ratner reportedly wants to pay just $20 million to the Metropolitan Transportation Authority for the portion of the Vanderbilt Yard it needs to build the Atlantic Yards arena. It initially promised to pay $100 million for the whole railyard. This series attempts to add some context. From the 10/3/08 Real Deal : Chelsea development site asking $20 million A three-story, 27,600-square-foot commercial building at 537-543 West 20th Street is on the market with an asking price of $20 million. The site, located between 10th and 11th avenues, has 100 feet of frontage and lies in a split zoning of M1-5 and C6-3. This allows for a 46,000-square-foot office, hotel or gallery development. Bermuda Limousine Corporation occupies the space but will relocate, and the building will be delivered vacant. That's a much, much smaller development than that planned for the segment of the railyard.

Forest City Ratner reportedly wants to pay just $20 million to the Metropolitan Transportation Authority for the portion of the Vanderbilt Yard it needs to build the Atlantic Yards arena. It initially promised to pay $100 million for the whole railyard. This series attempts to add some context. From the 6/10/09 LoHud.com: NAI Friedland Realty, a commercial real estate firm based in Yonkers, said that it recently helped complete one of the largest real estate sales of the year in the Bronx. The 144,000-square-foot Paradise Foods warehouse at 1080 Leggett Avenue in the Hunts Point area of the Bronx has sold for $20 million. Manhattan Beer Distributors purchased the 4.9-acre property from Paradise Foods. That's a little more than twice as much acreage as the section of Vanderbilt Yard at issue, but the warehouse is much smaller than the development planned for the segment of the railyard.

Forest City Ratner reportedly wants to pay just $20 million to the Metropolitan Transportation Authority for the portion of the Vanderbilt Yard it needs to build the Atlantic Yards arena. It initially promised to pay $100 million for the whole railyard. This series attempts to add some context. In November 2007, according to the Real Deal : White Plains-based developer Arcadia Realty Trust bought a two-acre site in Sheepshead Bay last November for $20 million with plans to build a mixed-use project with 300,000 square feet of retail space. More development at AY site Meanwhile, the 2.27-acre railyard segment (Block 1119, Lot 7) would seem to occupy at least 40% of the arena block--at least the of the arena block would seem to be at least 40%--at least the part east of 5th Avenue.  And the arena would be some 800,000 square feet, with towers and retail on the arena block eventually totaling 1.5 million square feet--the smallest amount that could be built without penalty, according to...

Forest City Ratner reportedly wants to pay just $20 million to the Metropolitan Transportation Authority for the portion of the Vanderbilt Yard it needs to build the Atlantic Yards arena. It initially promised to pay $100 million for the whole railyard. This series attempts to add some context. How might the developer raise some more scratch? Well, Forest City Enterprises and Bruce Ratner are the majority owners of the team, and they're scheduled to pay star guard Vince Carter $16.1 million next year and $17.5 million in two years. But the MTA wouldn't bring that up, would they?

Forest City Ratner reportedly wants to pay just $20 million to the Metropolitan Transportation Authority for the portion of the Vanderbilt Yard it needs to build the Atlantic Yards arena. It initially promised to pay $100 million for the whole railyard. This series attempts to add some context. From the Cleveland Plain Dealer : Forest City executives expressed confidence in the company's future and pointed to the success of their recent stock offering, which netted nearly $330 million. President and Chief Executive Officer Charles Ratner said the company's guiding families -- the Ratners, the Millers and the Shafrans -- bought $20 million worth of that stock . Existing investors bought many of the 52.3 million shares involved in the offering. The company will use the proceeds to repay debt. "Liquidity trumps dilution," Charles Ratner said. "Liquidity trumps everything." (Emphasis added) Well, yes, liquidity is important, so that's why the developer appa...

Forest City Ratner reportedly wants to pay just $20 million to the Metropolitan Transportation Authority for the portion of the Vanderbilt Yard it needs to build the Atlantic Yards arena. It initially promised to pay $100 million for the whole railyard. This series attempts to add some context. Can FCR only afford $20 million? Its parent company seems to be doing better. From Forest City Enterprises CEO Chuck Ratner's remarks yesterday in press release reporting first-quarter revenue: "Several significant events occurred after the end of the first quarter. Foremost among these was our successful offering of Class A common shares, which closed May 19. Including over-allotments exercised by the underwriters, the total offering was 52.3 million shares, and generated total net proceeds of $330.4 million, after deducting underwriting discounts and commissions. The proceeds have been used to repay borrowings on our corporate credit facility." Also from the press release: At A...

Forest City Ratner reportedly wants to pay just $20 million to the Metropolitan Transportation Authority for the portion of the Vanderbilt Yard it needs to build the Atlantic Yards arena. It initially promised to pay $100 million for the whole railyard. This series attempts to add some context. Let's put aside, for the moment, the bait-and-switch aspects of pledging to pay for the whole railyard, then offering to pay for it in segments. (After all, if that were preferred public policy, then parcels could have been bid out, as with the UNITY Plan .) One strange aspect about FCR's apparent plan to pay $20 million for Block 1119, Lot 7, is that it doesn't even represent a pro rata payment. According to city Finance Department records , the segment is approximately 495 feet x 200 feet. That 99,000 square feet represents 2.27 acres, or 26.7% of the 8.5-acre railyard. So a pro rata payment of 26.7% would be $26.7 million. (The arena block is above. The full AY footprint Block and...