http://www.hudsonyardscoalition.com/downloads/Update-02.09.05.pdf
Evidence Mounts That Cablevision ‘Offer’ is a Sham
--NYC Real Estate Industry Up in Arms Over Cablevision’s Phony Offer--
REBNY Questions Motives for Cablevision ‘Offer’
The Real Estate Board of New York, (REBNY) released a report yesterday showing Cablevision’s offer for the western rail yards could be as low as $80 million – not $600 million, as widely reported.
REBNY President Steven Spinola: “The unanswered questions that arise from the offer cause us to doubt that this is a credible proposal for the site. The real estate community knows that this is not a $600 million offer. When you look at the numbers this way, without considering the conditions and assumptions, you may as well be comparing offers for two different sites in two different countries.” The analysis prepared by REBNY (available on request) clearly points out the misleading nature of the bid put forth by Cablevision.
• The Jets $100 million payment is the net present value of their lease payments over 49 years to the MTA. In total dollars, the MTA would receive $413 million over the term of the lease. The Cablevision offer includes the cost of the platform ($250 million). If one assumes that the $350 million balance is paid to the MTA over a 49 year lease (similar to the Jets) the net present value of their lease payments would be $80.8 million.
• The MSG net present value offer results in a development square foot price of $11.88 for a site zoned for high density residential and commercial use. In contrast, the Jets proposal is paying approximately $87 per developable manufacturing-zoned land on a net present value basis.
• It is unclear from the Cablevision offer what the proposed FAR would be on the site. (The rail yard is zoned manufacturing with a 2 FAR.) However, if we assume that Cablevision seeks a 12 FAR, as the appraisal commissioned by the coalition supported by MSG/Cablevision and released in December, the site would generate total development of approximately 6.8 million square feet. With new zoning now in place for the far West Side, it is unlikely that the community and the City Council, which sought to lower density, would approve high density for this site. Presumably, loss of density would drive down the price offered by MSG.
Analysts Question Cablevision Gimmick
Merrill Lynch analyst Jessica Reif Cohen said of Cablevision's $600M bid for the West Side Rail Yard, "This high-profile bid appears to be a far stretch for the company, as mixed-use real estate development is outside of the company's expertise, and the financing for this venture remains unclear" (HOLLYWOOD REPORTER, 2/8).
Wachovia Capital Markets LLC analyst Jeff Wlodarczak said today "It would appear their primary motivation is to get the new stadium derailed (presumably to protect their Madison Square Garden cash flow),'' (BLOOMBERG NEWS, 2/8)
www.hudsonyardscoalition.com
Jim Whelan, Executive Director 212-484-1280
HUDSON YARDS UPDATE News from the Hudson Yards Coalition
February 9, 2005
http://www.hudsonyardscoalition.com/downloads/Update-02.09.05.pdf http://www.hudsonyardscoalition.com/downloads/Update-02.09.05.pdf
jake · 2005-05-24
http://www.hudsonyardscoalition.com/downloads/Update-02.09.05.pdf Evidence Mounts That Cablevision ‘Offer’ is a Sham --NYC Real Estate Industry Up in Arms Over Cablevision’s Phony Offer-- REBNY Questions Motives for Cablevision ‘Offer’ The Real Estate Board of New York, (REBNY) released a report yesterday showing Cablevision’s offer for the western rail yards could be as low as $80 million – not $600 million, as widely reported. REBNY President Steven Spinola: “The unanswered questions that arise from the offer cause us to doubt that this is a credible proposal for the site. The real estate community knows that this is not a $600 million offer. When you look at the numbers this way, without considering the conditions and assumptions, you may as well be comparing offers for two different sites in two different countries.” The analysis prepared by REBNY (available on request) clearly points out the misleading nature of the bid put forth by Cablevision. • The Jets $100 million payment is the net present value of their lease payments over 49 years to the MTA. In total dollars, the MTA would receive $413 million over the term of the lease. The Cablevision offer includes the cost of the platform ($250 million). If one assumes that the $350 million balance is paid to the MTA over a 49 year lease (similar to the Jets) the net present value of their lease payments would be $80.8 million. • The MSG net present value offer results in a development square foot price of $11.88 for a site zoned for high density residential and commercial use. In contrast, the Jets proposal is paying approximately $87 per developable manufacturing-zoned land on a net present value basis. • It is unclear from the Cablevision offer what the proposed FAR would be on the site. (The rail yard is zoned manufacturing with a 2 FAR.) However, if we assume that Cablevision seeks a 12 FAR, as the appraisal commissioned by the coalition supported by MSG/Cablevision and released in December, the site would generate total development of approximately 6.8 million square feet. With new zoning now in place for the far West Side, it is unlikely that the community and the City Council, which sought to lower density, would approve high density for this site. Presumably, loss of density would drive down the price offered by MSG. Analysts Question Cablevision Gimmick Merrill Lynch analyst Jessica Reif Cohen said of Cablevision's $600M bid for the West Side Rail Yard, "This high-profile bid appears to be a far stretch for the company, as mixed-use real estate development is outside of the company's expertise, and the financing for this venture remains unclear" (HOLLYWOOD REPORTER, 2/8). Wachovia Capital Markets LLC analyst Jeff Wlodarczak said today "It would appear their primary motivation is to get the new stadium derailed (presumably to protect their Madison Square Garden cash flow),'' (BLOOMBERG NEWS, 2/8) www.hudsonyardscoalition.com Jim Whelan, Executive Director 212-484-1280 HUDSON YARDS UPDATE News from the Hudson Yards Coalition February 9, 2005 http://www.hudsonyardscoalition.com/downloads/Update-02.09.05.pdfCablevision ‘Offer’ is a Sham
http://www.hudsonyardscoalition.com/downloads/Update-02.09.05.pdf