The End of Broadcast Center One?

What happens when a lease is signed by an anchor tenant, helping to prosper one of the District’s largest developments, but the lessee’s stock plummets to an all-time low? Well, I don’t have an answer for your right now but lets examine the situation.

In January of 2008 a lease was signed between Radio One Inc for the use of Broadcast Center One in a partnership with Ellis Development. At the time, Radio One Inc’s stock price (NASDAQ: ROIAK) was a respectful $2.36. Today, however the stock price is at $.14 (yes 14 cents), which equates to about a 93% loss in less than 11 months. Could this be the end of Cathy Hughes Radio One & TV One empire? I wouldn’t expect so – but this could mean the $23 million the city is funding to help the $127 million construction may be in question right now and this may the culprit for the 12+month delay (at best) in ground-breaking.