Atlantic Yards Barclays Center, Manhattan, Building, Project, Frank Gehry, News
Atlantic Yards Barclays Center New York
NY Architecture Development – design by Ellerbe Becket
16 Dec 2013
Atlantic Yards News
Forest City and Greenland Group Sign Definitive Agreement for Joint Venture at Atlantic Yards in Brooklyn
Cleveland, Ohio, Brooklyn, New York, and Shanghai, China – December 16, 2013 – Forest City Enterprises, Inc. (NYSE: FCEA and FCEB) and Shanghai-based Greenland Group Co. today announced that they have completed a definitive agreement for a joint venture to develop Atlantic Yards, a 22-acre residential and commercial real estate project in Brooklyn. The two companies had announced a memorandum of understanding for the joint venture in October.
The joint venture, which is expected to close in 2014, would cover both phase one and phase two of the project – excluding Barclays Center and the first housing tower, B2 – including infrastructure, a permanent MTA rail yard, a platform above the rail yard and future residential units. The closing of the agreement is subject to necessary regulatory approvals, including the Committee on Foreign Investment in the United States (CFIUS) as well as the government of China.
Under the joint venture agreement, the Greenland Group would acquire 70 percent of the project and co-develop the project with Forest City, with both organizations sharing in all project costs going forward in proportion to their ownership interests. In addition, the Greenland Group would also make a capital contribution to reimburse Forest City for certain costs incurred to date. Forest City, through its New York-based subsidiary, Forest City Ratner Companies (FCRC), would manage day-to-day activities on behalf of the joint venture, which would develop the project consistent with the approved master plan.
David J. LaRue, Forest City President and CEO, said, “This agreement is an important step forward for Atlantic Yards. We look forward to welcoming Greenland Group as a partner and applaud their commitment to affordable housing, their dedication to the future of Brooklyn and New York, and their confidence in Forest City. Securing strategic partners to invest with us to activate development and create long-term value is a key strategy for Forest City. Upon closing, Greenland Group promises to be our largest such partnership to date. I want to acknowledge the fine work of our New York team on this important milestone. Under MaryAnne Gilmartin and Chris Clayton’s leadership, we have created a formidable and unprecedented strategic partnership that will allow us to move forward on one of our most important and ambitious developments.
Zhang Yuliang, Chairman and President of Greenland Group, said “Like Forest City, we are committed to building the highest quality housing using the best design and cutting-edge technology. To do this in Brooklyn, New York is a dream for all of us at Greenland. Brooklyn has fast become an international brand; and as an international company we look forward to creating there a project that will speak to the world about the importance of affordable housing and world-class design. We are very excited with the potential to partner with Forest City on this development.”
Bruce C. Ratner, Executive Chairman of FCRC said, “With this definitive agreement in place, we are a major step closer to delivering more expeditiously the affordable housing and other benefits of Atlantic Yards to Brooklyn. The Greenland Group’s interest and willingness to make this investment is an extraordinary vote of confidence in our City and State and we look forward to working with them as partners as we bring Atlantic Yards to completion, especially the 6,430 units of housing, including 2,250 units of affordable housing.”
Atlantic Yards would be Greenland Group’s second project in the United States. In July, Greenland Group purchased a site in downtown Los Angeles and plans to build a hotel and residential units. The Shanghai-based developer is the number one multiple-function real estate developer in China, with projects in more than 70 cities in 25 provinces in China. Greenland Group is respected in particular for developing well designed, high-rise buildings that are part of large urban complexes built around transit and high-speed rail. Four of their buildings are among the ten tallest buildings in the world.
In 2012, Greenland Group ranked 359th among Fortune Magazine’s list of the Top 500 global enterprises, 73rd among Top 500 Chinese companies, and number one among Chinese real estate enterprises. It achieved revenues of $36.6 billion and a total profit of approximately $2 billion in 2012.
The definitive agreement, which was completed less than four months after Forest City and Greenland Group met at the Atlantic Yards site late this past summer, was signed by representatives of both companies at a meeting in Shanghai.
MaryAnne Gilmartin, President and CEO of FCRC, said, “Chairman Zhang Yuliang and his team are to be applauded for both their willingness to invest in New York and their desire to achieve this agreement in such a short period of time so we can collectively work to bring this important project to fruition. They have shown repeatedly that they are innovative, design focused and understand infrastructure and vertical construction, values that we share at Forest City.”
Yifei Chang, President and CEO of Greenland US, said, “Atlantic Yards is the ideal project for Greenland Group to partner on because it represents values that we strongly believe in, affordable housing and sustainability. For Brooklyn to remain true to its history and reputation it must remain a home for all. Working with Forest City, we believe we can help achieve those goals, and do so in a way that is innovative, attractive and will benefit the community.”
Empire State Development President & CEO and Commissioner of the New York State Department of Economic Development Kenneth Adams, said, “Atlantic Yards is an important project that will bring thousands of jobs, affordable housing, open space and community facilities to Brooklyn. We look forward to welcoming Greenland Group to our effort of bringing this project and all of the public benefits it will create to completion.”
About Greenland Group
Established in 1992, the Shanghai-based Greenland Group has formed a diversified industrial structure with a focus on energy, finance, and real estate. Greenland Group is involved in construction projects in more than 70 cities and provinces in China as well as in Korea, Australia and the United States, among others.
About Forest City
Forest City Enterprises, Inc. is an NYSE-listed national real estate company with $9.3 billion in total assets. The Company is principally engaged in the ownership, development, management and acquisition of commercial and residential real estate and land throughout the United States. For more information, visit www.forestcity.net.
Safe Harbor Language
Statements made in this news release that state Forest City’s or its management’s intentions, hopes, beliefs, expectations or predictions of the future are forward-looking statements. The company’s actual results could differ materially from those expressed or implied in such forward-looking statements due to various risks, uncertainties and other factors. Risks and factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, the impact of current lending and capital market conditions on its liquidity, ability to finance or refinance projects and repay its debt, the impact of the current economic environment on its ownership, development and management of its commercial real estate portfolio, general real estate investment and development risks, using and investing in modular construction as a new construction methodology, vacancies in its properties, further downturns in the housing market, competition, illiquidity of real estate investments, bankruptcy or defaults of tenants, anchor store consolidations or closings, international activities, the impact of terrorist acts, risks of owning and operating an arena, risks associated with an investment in a professional sports team, its substantial debt leverage and the ability to obtain and service debt, the impact of restrictions imposed by its credit facility and senior debt, exposure to hedging agreements, the level and volatility of interest rates, the continued availability of tax-exempt government financing, the impact of credit rating downgrades, effects of uninsured or underinsured losses, effects of a downgrade or failure of its insurance carriers, environmental liabilities, conflicts of interest, risks associated with the sale of tax credits, risks associated with developing and managing properties in partnership with others, the ability to maintain effective internal controls, compliance with governmental regulations, increased legislative and regulatory scrutiny of the financial services industry, changes in federal, state or local tax laws, volatility in the market price of its publicly traded securities, inflation risks, litigation risks, cybersecurity risks and cyber incidents, as well as other risks listed from time to time in the company’s SEC filings, including but not limited to, the company’s annual and quarterly reports.
23 Dec 2009
Atlantic Yards New York
FCRC CLOSES ON ATLANTIC YARDS
Master Closing on the Project Means Barclays Center, Thousands of Jobs,
Affordable Housing and the Nets Coming to Brooklyn
(Brooklyn, NY) – December 23, 2009 – Bruce Ratner, the Chairman and CEO of Forest City Ratner Companies (FCRC), the developer of Atlantic Yards in Brooklyn, announced today that FCRC, the Empire State Development Corporation (ESDC), the Metropolitan Transportation Authority (MTA), the City of New York, and other parties have executed all necessary documents and officially closed on the project.
“Today, what has long been a vision for the future of Brooklyn becomes a reality,” Mr. Ratner said. “Six years after we announced our plan for Atlantic Yards we are very pleased to be closing on the project with our public partners. Today’s closing represents a vital step forward for New York City, one that is all the more important because of the economic challenges our City faces. The jobs we are creating today, as we set forth on the arena and one of the boldest affordable housing initiatives in our City’s history, will create a new dynamic center in this wonderful borough.”
While construction on the Barclays Center and the project site in downtown Brooklyn has commenced and is ongoing, today’s closing includes the issuance of bonds and the execution of various real estate documents, including the arena lease, financing, development, and purchase and sale agreements.
To date, 35 buildings, roughly 56% of the structures on the site, have been demolished and construction of the temporary rail yard has been completed. Removal of the Vanderbilt Yard tracks and critical upgrades to the sewer and water infrastructure in the area are underway.
Mr. Ratner thanked the Governor, the Mayor, the Brooklyn Borough President, ESDC, the MTA – Long Island Rail Road and the vast majority of the people of Brooklyn and New York who have stood by us and have long believed in the benefits and promise of Atlantic Yards.
Atlantic Yards will create close to 17,000 union construction jobs, as well as 8,000 permanent jobs once the project is complete. The project involves the redevelopment of 22 acres in downtown Brooklyn, which will include approximately six million square feet of residential space (6,430 units of affordable and market-rate housing), an 18,000-seat sports and entertainment arena to be known as the Barclays Center, 247,000 square feet of retail use, approximately 336,000 square feet of office space, and eight acres of publicly accessible open space.
FCRC and the Nets today also have placed branded signage along fencing at the arena construction site, which includes logos of the major partners of the Barclays Center. Those partners include Barclays, which is the naming rights partner, along with ADT, Cushman & Wakefield, EmblemHealth, MGM Grand at Foxwoods, Anheuser-Busch, High Point Solutions, IZOD, Jones Soda, and MetroPCS.
24 Nov 2009
FOREST CITY RATNER STATEMENT ON NYS COURT OF APPEALS RULING ON EMINENT DOMAIN LAW SUIT FILED BY OPPONENTS OF ATLANTIC YARDS PROJECT IN BROOKLYN
Courts Again Side with Atlantic Yard. Jobs and Affordable Housing to Come to Brooklyn
Brooklyn, NY – November 24, 2009 – Bruce Ratner, CEO and Chairman of Forest City Ratner Companies, issued the following statement today regarding the NYS Court of Appeals ruling in favor of the Atlantic Yards project in Brooklyn.
The Court’s ruling upholds the State’s right to use eminent domain given the public benefits associated with the Atlantic Yards Development in Brooklyn.
“Once again the courts have made it clear that this project represents a significant public benefit for the people of Brooklyn and the entire City,” Mr. Ratner said. “Our commitment to the entire project is as strong today as when we started six years ago. Today, however, this project is even more important given the need for jobs and economic development.”
Mr. Ratner said construction activity on the yards will continue, with the intent that the Nets will play ball in the Barclays Center in the 2011-2012 season.
In addition to Barclays, which has the exclusive naming rights, eight companies have signed on as founding partners for the arena.
The courts have ruled consistently in favor of the development. Mr. Ratner explained as well that the arena and larger development are expected to create 16,924 union construction jobs and over 8,000 permanent jobs. The tax revenues that will be generated for the City and State during the construction period are expected to exceed $240 million and after construction reach approximately $70 million a year.
Barclays Center : information + images
News Update – 23 Sep 2009
FOREST CITY RATNER COMPANIES AND ONEXIM GROUP ANNOUNCE PARTNERSHIP IN BROOKLYN
(Brooklyn, U.S.A. and Moscow, Russia) – September 23, 2009 – Forest City Ratner Companies (“FCRC”), Nets Sports and Entertainment (“NSE”) and Onexim Group announced today that they have signed a letter of intent to create a strategic partnership for the development of the Atlantic Yards Project, a 22-acre residential and commercial real estate project in Brooklyn and the Barclays Center, the future home for the NBA’s Nets.
This partnership will ensure the successful completion of a world-class entertainment venue in Brooklyn, the relocation of the NBA Nets basketball team and the economic and housing benefits of the Atlantic Yards Project.
In accordance with the agreement, entities to be formed by Onexim Group will invest $200 million and make certain contingent funding commitments to acquire 45% of the arena project and 80% of the NBA team, and the right to purchase up to 20% of the Atlantic Yards Development Company, which will develop the non-arena real estate.
Bruce Ratner, the Chairman and CEO of FCRC, said, “Mikhail and Onexim will be great partners for this project. I am thrilled that smart global investors appreciate the exciting economic potential of Brooklyn. We are one step closer to achieving our goals of creating much needed jobs and economic development for Brooklyn and the city.”
Mikhail Prokhorov, President of Onexim Group, said “We are delighted to join in this exciting project and to participate in the landmark development of global sports in this entertainment arena in the heart of New York City. I have a long-standing passion for basketball and pursuing interests that forward the development of the sport in Russia. I look forward to becoming a member of the NBA and working with Bruce and his talented team to bring the Nets to Brooklyn.”
NBA Commissioner David Stern said, “We are looking forward to the Nets’ move to a state-of-the-art facility in Brooklyn, with its rich sports heritage. Interest in basketball and the NBA is growing rapidly on a global basis and we are especially encouraged by Mr. Prokhorov’s commitment to the Nets and the opportunity it presents to continue the growth of basketball in Russia.”
The transaction is expected to close by the first quarter of next year upon certain conditions being fulfilled, including approval by the NBA’s Board of Governors. The Raine Group and Goldman, Sachs & Co. advised FCRC and NSE. Simpson Thacher & Bartlett LLP acted as legal counsel to FCRC and NSE. Hogan & Hartson advised Onexim Group.
About Onexim Group
Onexim Group, one of the leading Russian private investment funds, was founded in 2007 by Mikhail Prokhorov and has a diversified portfolio of investments in the metals and mining sector, financial services, energy and nanotechnology, real estate and other industries. Onexim Group and Mr. Prokhorov also support many sports, cultural and charitable programs in the communities in which we live and work.
Forest City Ratner Companies (FCRC), a wholly owned subsidiary of Forest City Enterprises, owns and operates 30 properties in the New York metropolitan area. Forest City Enterprises, Inc., an $11.7-billion NYSE-listed national real estate company, is principally engaged in the ownership, development, management and acquisition of commercial and residential real estate and land throughout the United States.
Safe Harbor Language
Statements made in this news release that state Forest City Enterprises’, FCRC’s or management’s intentions, hopes, beliefs, expectations or predictions of the future are forward-looking statements. Actual results could differ materially from those expressed or implied in such forward-looking statements due to various risks, uncertainties and other factors. Risks and factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, the impact of current market conditions on our liquidity, ability to finance or refinance projects and repay our debt, general real estate investment and development risks, vacancies in our properties, further downturns in the housing market, competition, illiquidity of real estate investments, bankruptcy or defaults of tenants, anchor store consolidations or closings, international activities, the impact of terrorist acts, risks associated with an investment in a professional sports team, our substantial debt leverage and the ability to obtain and service debt, the impact of restrictions imposed by our credit facility and senior debt, exposure to hedging agreements, the level and volatility of interest rates, the continued availability of tax-exempt government financing, the impact of credit rating downgrades, effects of uninsured or underinsured losses, environmental liabilities, conflicts of interest, risks associated with developing and managing properties in partnership with others, the ability to maintain effective internal controls, compliance with governmental regulations, volatility in the market price of our publicly traded securities, litigation risks, as well as other risks listed from time to time in the Forest City Enterprises’ SEC filings, including but not limited to, its annual and quarterly reports.
News Update – 9 Sep 2009
Barclays Center : design by Ellerbe Becket and SHoP Architects
News Update – 28 Jul 2009
Rally in support of the Atlantic Yards
ELECTED OFFICIALS, ACORN, UNIONS AND COMMUNITY LEADERS TO VOICE SUPPORT FOR ATLANTIC YARDS
Groups Cite Jobs, Housing and Community Benefits
Brooklyn, NY – Tomorrow, ACORN’S Bertha Lewis, Brooklyn Borough President Marty Markowitz and other elected officials, community, labor and business leaders, along with religious organizations and youth groups, will outline their support for the Atlantic Yards development.
Supporters will discuss the anticipated benefits of the $5.6 billion project, in particular the jobs (17,000 union construction jobs and over 8,000 permanent jobs) and housing (2,250 rental units for low, moderate, and middle income families).
News Update – 24 Jun 2009
BRUCE RATNER STATEMENT ON MTA BOARD APPROVAL OF ATLANTIC YARDS
Brooklyn, NY – June 24, 2009 – Bruce Ratner, the Chairman and Chief Executive Officer of Forest City Ratner Companies, the developer of Atlantic Yards in Brooklyn, issued the following statement today following the MTA Board vote approving the project.
“The world has changed significantly since the MTA accepted our bid four years ago. But contrary to what critics have said, our commitment to the MTA and to a new rail yard is as strong today as it was then – as is our commitment to other transit enhancements at the Atlantic Avenue station.”
Mr. Ratner explained too that Atlantic Yards will provide numerous benefits to the people of Brooklyn and the entire City, including 17,000 construction and permanent jobs; 6,430 housing units, 2,250 of which will be affordable; office space; an elementary and intermediate school; a health care center; an intergenerational center; eight acres of open space; and a new LIRR storage yard, and a new transit entrance at Atlantic and Flatbush Avenues.
“The MTA approval today, along with ESDC Board authorization yesterday, was critical to this project going forward. Delays due to litigation and a difficult economic environment required the approved changes. We have worked very hard, however, as have our colleagues in government, to ensure that these changes would in no way impact the overall benefits of the project. We’re are extraordinarily appreciative of the professionalism and vision of these two agencies and all who believe that development is good for the City, that jobs are good and that affordable housing is good should applaud their actions.”
“More than before,” Mr. Ratner concluded, “Atlantic Yards is about the future of Brooklyn. It is about the Barclays Center, which will be a world-class sports and entertainment facility. But equally it is about affordable housing and public space. It is about jobs and opportunity. It is about creating a new community in the heart of a thriving borough. We need to work together to achieve these goals and the support this week is a very important step in that direction.”
News Update – 23 Jun 2009
Statement from Bruce Ratner on ESDC Board Decision
Brooklyn, NY – June 23, 2009 – Forest City Ratner Companies Chairman and Chief Executive Officer Bruce Ratner said the following today in response to the ESDC Board’s adoption of the modified general project plan for the Atlantic Yards development in Brooklyn:
“We greatly appreciate the ESDC Board’s action today. The modified plan will allow us to proceed and at the same time ensure that the many benefits of Atlantic Yards become a reality.
Mr. Ratner explained that the project benefits will include 17,000 construction and permanent jobs; 6,430 housing units, 2,250 of which will be affordable; office space; an elementary and intermediate school; a health care center; an intergenerational center; eight acres of open space; and a new LIRR storage yard, and a new transit entrance at Atlantic and Flatbush Avenues.
“Today’s ESDC Board authorization means that we are one step closer to building the Barclays Center, a state-of-the-art 18,000 seat sports and entertainment arena that will be the home of the Brooklyn Nets basketball team and host over 225 diverse events throughout each year,” he noted.
“We have worked in Brooklyn for over a quarter of a century. It is our company’s home and home to many of the people who work at FCRC. We fully understand our responsibilities to the borough and the communities around the Atlantic Yards project. We take them seriously and will work to achieve and even exceed them as this project moves forward.”
Atlantic Yards Brooklyn – Ellerbe Becket
The design by Frank Gehry for the Barclays Center will no longer go ahead
“We are thrilled to be working on what will be a world-class sports and entertainment venue, the Barclays Center,” said Ellerbe Becket principal Bill Crockett. “In partnership with Forest City Ratner, we will deliver a spectacular arena that will give Brooklyn the first-class facility it deserves.”
Key Elements of the Atlantic Yards Development include the Brooklyn Nets sports and entertainment venue
About Ellerbe Becket
Ellerbe Becket is internationally recognized as a leader in the architecture, engineering and interior design industries. The firm’s sports practice specializes in the design of facilities that are renowned for providing outstanding patron experience. With offices worldwide, the firm has designed more arenas than nearly any other architectural firm, including 15 new arenas for the NBA and NHL in the past two decades. Ellerbe Becket brings together fans, athletes, and sponsors through the design of iconic venues that are efficient to build, own and operate. 2009 marks Ellerbe Becket’s 100th anniversary.
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Atlantic Yards Development Masterplan – previous architect : Frank Gehry
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Atlantic Yards Barclays Center Building