(Since co-op and condominium buildings must be treated the same as rental properties, the law requires officials to disregard the monthly maintenance charges and assign projected "rental values" for the apartments to calculate the building's income).
"As the economy softened in the spring and summer, lenders began to modify such things as projected rental growth and occupancy levels in a way that lowered the value of properties," he said.
The real estate underlying the retail stores has always represented premium locations in the New York metropolitan area and, if repositioned for redevelopment and leased to third parties, could become valuable income-producing assets for its owners; at least the projected rental income promises significantly better investment returns than the liquidation alternative.
These stipulate that you will be paid the projected rental amount, even if the property is unoccupied, and somewhat protects your cash flow.
That would have meant forfeiting $19 million it had invested and $94 million in projected rental revenue and transferring operation of the facility to a private partner for 12 1/2 years.
Dubai lenders do not take into consideration any projected rental income from the property.
The total cost of the project, including rental of the space — $33,000 for six weeks, plus a $33,000 security deposit — is expected to total $300,000 to $400,000, Mr. Ramsay said.
Mr. Rueda is clearly disturbed by the steady stream of disappointment from the project's rental trailer, where the boxes of "ineligible" applications far outnumber those marked "good".
Annual rents will average $30 to $50 a square foot, depending on the size and location of the store, he said, adding that a percentage of the project's rental stream goes to the city to pay back the loan.
Forest City Ratner officials said they expected up to 1,000 more people at the second session, which like the first was organized to provide details about the project's rental units to those most likely to apply for them.
