Forest City reaches deal for NY land
By BRANDON GLENN
4:46 pm, September 22, 2005
Forest City Enterprises Inc. (NYSE: FCEA) has reached a $100 million agreement with New York’s transit authority to buy eight acres for the development company’s ambitious Atlantic Yards project in Brooklyn.
The company has been acquiring nearby land for the 21-acre mixed-use project and hopes to begin construction next year, according to a statement from Cleveland-based Forest City.
CFO Tom Smith said he didn’t know how much of the 21-acre site Forest City already has acquired.
The project’s centerpiece would be a Frank Gehry-designed, 850,000-square-foot arena for the New Jersey Nets, a National Basketball Association team, in which Forest City is an investor.
Mr. Smith said the basketball team’s ownership group is “considering” changing the team’s name.
“It would be hard to call them the New Jersey Nets when they’re in Brooklyn,” he said.
Project plans also call for 2.1 million square feet of commercial office space, 300,000 square feet of retail space; and 4.4 million square feet of residential space, consisting of approximately 4,500 housing units, according to the statement.
"Our long-term objectives are to build a great NBA franchise and use the arena as a catalyst for the Atlantic Yards project," CEO Bruce Ratner said in the statement.