The Barclays Center will be a state-of-the-art landmark arena which will serve as the centerpiece of the Atlantic Yards project, a major mixed-use development project in downtown Brooklyn. When it opens, the stadium is expected host more than 200 events a year, including home games for the NBA’s Nets, who plan on relocating to Brooklyn in 2012.
To help finance a portion of the construction, the Brooklyn Arena Local Development Corporation enlisted Goldman Sachs to help develop a structure and market a $511 million revenue bond transaction.
In order to obtain tax-exemption, the bonds needed to be issued by December 31, 2009, but the developer had yet to receive vacant possession of the land required to begin construction. Goldman Sachs proposed an innovative escrow structure that permitted the bonds to be issued on December 23, 2009. The bond proceeds were then placed into escrow until vacant possession was received a few months later, at which time the bond proceeds were used to fund construction. Through an extensive marketing effort, Goldman Sachs attracted interest from a large and diverse group of investors
Source: Forest City Ratner Companies