A real estate deal that the Metropolitan Transportation Authority expected to bring in $700 million for capital spending is on hold, the New York agency announced last week.

A partnership between real estate developer Related Cos. and Goldman, Sachs & Co. to develop the 26-acre East and West Side Rail Yards in Manhattan — also known as the Hudson Yards — was unable to agree with the MTA on contractual terms by a Jan. 31 deadline due to the economic downturn and the credit crunch, the authority said.

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