Mikhail Prokhorov —who has quietly pulled out of many of his Russian investments— is once again putting money into New York real estate, this time a $1.5 billion commercial and residential development around Nassau Coliseum. It’s likely to be approved Monday.
On Monday, Nassau County legislators will vote on whether to allow development of 77 acres the county owns around the Coliseum. The legislature is expected to approve the plan which will be developed by Prokhorov’s BSE Global and RXR Realty, a local developer.
The now vacant blacktop, to be called “Nassau Hub,” is being billed as a “new suburbia.” The plan, according to Newsday, calls for the construction of 500 units of housing, geared primarily toward millennials; 600,000 square feet of office and biotech research space; two hotels and 200,000 square feet of entertainment options and “experiential retail,” stores that provide additional services for customers such as yoga and cooking classes.
Currently, Prokhorov owns 85 percent of the arena lease —the county owns the land— and Bruce Ratner, the Nets former owner, controls the remaining 15 percent. Once Nassau County approves various changes in the lease, Prokhorov would buy out Ratner. It would mark the end of the decade-long Prokhorov-Ratner partnership.
Brett Yormark, who is the face of the project, spoke at a hearing last month, saying “This is our one great moment, one last great chance to get this right.”
The project is the latest New York area real estate investment the Russian oligarch has invested in. In addition to controlling the Nets —and their G League affiliate, Barclays Center and Nassau Coliseum; Prokhorov’s company is nearing completion of the renovation of Paramount Theatre in Brooklyn and Webster Hall in Manhattan. The venues are expected to reopen next year. Brett Yormark, BSE Global CEO, has also said the company is looking into entertainment venues in London.
In addition, developers have also proposed a 50,000-60,000 square-foot concert venue as part of the \ Hub, to be called the Long Island Frame. The Long Island Frame aims to attract local musical artists, performers, and even athletes.
At the same time Prokhorov is developing U.S. and maybe U.K. properties, he’s sold off mining, development and other assets in Russia ... as well as 49 percent of the Nets. According to reports, Prokhorov is also stockpiling cash ... billions in cash.
Yormark and RXR’s Scott Rechler have said that the project would generate millions of dollars in new tax revenue not just for the county but the nearby communities.
The developers embittered lawmakers announcing for the first time they would be pursing subsidies from the county to counteract taxes for the construction of the residential units on the site.
Once the legislators approve the plan, developers will need additional legislative approval on details including final plans, which will also include pedestrian bridges to connect the Hub to RXR Plaza, Hofstra University, and Nassau Community College and a bus transit system to connect the Hub to the Mineola and Hempstead Long Island Road stations.
“This is our one great moment, one last great chance to get this right,” said Yormark to the 300+ in attendance in Mineola, Long Island hearing last month.