Forest City Enterprises is selling its 55 percent majority stake in Barclays Center, according to Street & Smith’s Sports Business Journal. Possible candidates include Nets owner Mikhail Prokhorov, who already owns 45 percent of the arena, or the new owners of the Islanders. No price has been named, but investment banking sources quoted by SBJ speculated $750,000,000 would be the top valuation, based on an estimated $30,000,000 in annual cash flow.
Atlantic Yards Report called the sale “curious,” considering the center cost more than $845,000,000 to build, according to various estimates. What do you make of it?
As Forest City Ratner battles builder Skanska in court over the stalled B2 tower and Greenland Forest City Partners moves ahead with the rest of the development, New York YIMBY has snagged a rendering of a new piece of Atlantic Yards/Pacific Park: a 17-story condo development planned for the large vacant lot on Dean Street between Carlton and Vanderbilt. CookFox is designing the 275-unit tower, which will have an address of 550 Vanderbilt Avenue.
New building applications were filed last month for the tower, which will include 326,047 square feet of residential space and 4,731 square feet of ground floor retail, as reported. The exterior will be a mix of masonry and precast concrete, which will provide “a gradual aesthetic transition” between the historic townhouses in the area and “the more modernist SHoP towers of the western end of the site,” according to YIMBY.
To recap the project’s timetable: the SHoP-designed modular tower at 461 Dean Street (formerly B2) has started construction but is stalled, 30 6th Avenue next door is supposed to break ground in the middle of next year, and the affordable tower at 535 Carlton and 550 Vanderbilt are both scheduled to break ground by the end of this year. Condo sales are supposed to start mid-2015, according to YIMBY.
Click through to see a close-up of the entrance of 550 Vanderbilt. What do you think of the design of the building, which will fill a prominent hole at the corner of Vanderbilt and Dean Streets?
As Skanska and Forest City prepare to meet in court tomorrow, Atlantic Yards Report has unearthed documents that detail a long list of problems with the construction of the modular tower, B2. To make a long story short, the tower could leak.
In more detail, there have been lots of problems with the alignment of the modules, according to Skanksa. For example, one problem is the tolerances between match plates, which tie together the modules. The original drawings called for a 1/4 inch tolerance but in the field the bolt holes only allowed a tolerance of 1/16th of an inch. To correct this flaw, the holes were enlarged, but apparently they became too big (1 and 3/4 of an inch), which “created the potential” for misalignment, according to the documents. The factory in the Navy Yard was also too small to allow for efficient production.
A hearing for a preliminary injunction to reopen the factory takes place tomorrow morning in Manhattan. Click through to Atlantic Yards Report for tons more insight on the construction issues Skanska is alleging. Also, the problems with the modular construction could freeze lending for modular projects in the area, according to a story in The New York Daily News.
The StorageMart on Atlantic Avenue — a huge, hard-to-miss building — is closing to make way for Atlantic Yards. Management sent out a notice via email to its customers yesterday, which one of them forwarded to us. Turns out the building is one of the ones being taken over by eminent domain! The judge granted the state’s request for all seven of the remaining Atlantic Yards sites yesterday, as DNAinfo and Atlantic Yards Report were the first to note.
StorageMart isn’t happy about the seizure. “The New York State Urban Development Corporation dba Empire State Development (ESD) has been trying for years to take over our property located at 718 Atlantic Ave as part of the Atlantic Yards project. Unfortunately it finally succeeded on August 29, 2014,” the email says.
The complex between Pacific and Dean Streets will rise 17 stories and house 282 units. Designed by Cook+Fox, the project will include 326,047 square feet of residential space and 4,731 square feet of ground floor retail. (more…)
As Forest City and Skanska wrangle over the stalled B2 modular tower, Forest City and partner Greenland are losing no time getting the next projects going. Permits have been filed for the second Atlantic Yards (now renamed Pacific Park) tower. This one will be at 535 Carlton, at the corner of Dean Street, and will be 100 percent affordable rentals.
The building will be 19 stories with 298 apartments, as New York YIMBY was the first to report. The architect of record is Cook+Fox. The project is supposed to break ground in December, Forest City Ratner promised.
Late Friday Forest City Ratner issued yet another salvo in the war with Skanska over their jointly operated and now-shuttered modular factory. “FCRC Modular representatives tried to enter the factory today and were barred by Skanska,” said a press release we received.
So, the release goes on, yet another lawsuit has been filed — this one by FCR Modular, the Forest City half of the partnership that with Skanska Modular runs the joint venture called FC+Skanska, according to the release.
To make a long story short, it alleges breach of contract by Skanska for shutting down the factory and asks the court for an injunction to reopen the factory “immediately.” Perhaps last week’s request to take over the factory was laying the groundwork for this suit?
In any case, it occurs to us that the merits of the case — even if, say, the allegations of both parties are true and they are both at fault — Skanska for poor management and Forest City for a non-workable modular design — may not matter. The winner may well turn out to be the one who can prove breach of contract.
Forest City Ratner and Skanska are at it again… This time, Forest City sent out a letter asking to take over Skanska’s modular factory at the Navy Yard. They say it’s for the good of the 157 workers! We reached out to Skanska for comment, and they called the proposal “a propaganda exercise.” Click through to see the letter and Skanska’s response. (more…)
The mudslinging has begun over construction delays at Atlantic Yards, with Skanska and Forest City Ratner trading lawsuits today over issues at the first tower, B2. Forest City accuses Skanska of massive delays and cost overruns amounting to tens of millions of dollars, according to a complaint filed today in Manhattan Supreme Court. Last week, Skanska shut down its modular apartment factory at the Navy Yard and halted construction on Dean Street. Work began on the 32-story, 363-unit modular B2 tower in December 2012, and it’s risen to about 10 stories so far.
Forest City wants a judge to order Skanska to restart construction and re-open the factory. The work suspension has left 150 union employees out of work and — here’s a juicy detail revealed in the lawsuit — the project’s construction lender has temporarily stopped giving funds for a loan until it receives a new anticipated completion date, the Daily News reported. (more…)
Work on the first Atlantic Yards tower, the modular building once known as “B2″, has stopped. Forest City Ratner and contractor Skanska are fighting over unexpected cost increases, The Wall Street Journal reported. The two sides are both pointing fingers at each other. (more…)
Well, here’s something we weren’t expecting: Forest City Ratner has rebranded Atlantic Yards. The new name of the development is Pacific Park. Forest City gave an interview to Curbed, which has a huge story, then sent us a press release this morning.
“While the development will forever be known as Atlantic Yards — there is a movie about it, after all — Pacific Park will be the new community that’s being built. Probably doesn’t hurt that a new name also sloughs off associations with past lawsuits, controversies over eminent domain, and visceral community opposition,” said Curbed. (more…)
Check out this updated map, which shows where the affordable and market rate housing at Atlantic Yards will go. The Atlantic Yards Report’s Norman Oder published it Thursday in City Limits and again on Atlantic Yards Report.
Pay no attention to the legend on the graphic — the important part is the outlines he added to the map. The two buildings outlined in yellow will be 100 percent affordable. The buildings outlined in red will be 50-50. The buildings outlined in green — six of them, apparently — will be market rate rentals or condos. That’s a lot of market rate apartments.
B4, incidentally, which is outlined in both green and red, will have a mix of 50-50 rentals and 100 percent market rate condos. (more…)