Forest City Ratner successfully sold bonds today, paving the way for construction of its new arena in Brooklyn.
There may be a few hoops left to jump through before Bruce Ratner can begin construction of his SHoP- and Ellerbe Becket-designed arena for the Brooklyn, né New Jersey, Nets, such as completing a partial sale of the team to a Russian oligarch, prevailing in some outstanding lawsuits, and going ahead with eminent domain against the area’s remaining holdouts. But the developer appears to have cleared the final major hurdle standing in his way with the successful sale of $511 million in tax-exempt bonds today for his $900 million arena. (There are still taxed bonds and an equity stake to be taken care of, but they lacked the December 31 deadline.)
Yes, those hoops may still present challenges, but none had the same drop-dead, end-of-the-year deadline the bonds did, and they seemed the likeliest chance for the project’s opponents to succeed. Instead, they sold briskly in a matter of hours, or, as Ratner put it in a release, “The interest in the arena bond offering was beyond our expectations,” expectations that have always been highly optimistic, though also always on the money. Perhaps this is why they are already preparing to divert traffic starting next Monday to make way for construction.