Forest City, Arizona State Retirement System launch $400 million fund for multifamily development

  Forest City, Arizona State Retirement System launch $400 million fund for
                           multifamily development

PR Newswire

CLEVELAND, Dec. 21, 2012

CLEVELAND, Dec. 21, 2012 /PRNewswire/ --Forest City Enterprises, Inc. (NYSE:
FCEA and FCEB) and the Arizona State Retirement System (ASRS) today announced
the creation of a strategic capital partnership and a $400 million equity fund
that will invest in multifamily development projects primarily in five core
markets: New York City, Washington, D.C., Boston, Los Angeles, and San
Francisco.

(Logo: http://photos.prnewswire.com/prnh/20080515/FRSTCTYLOGO )

Funding for the venture will be 75 percent from ASRS and 25 percent from
Forest City. The company estimates that more than two-thirds of its equity
contribution to the fund is already represented by entitled development
opportunities on its balance sheet. Equity from the fund will be paired with
conventional project financing for an estimated aggregate development
investment of approximately $800 million to $1 billion. Forest City will
serve as fund manager.

"We are honored to have the Arizona State Retirement System as our partner in
this new fund," said David J. LaRue, Forest City president and chief executive
officer. "Their financial strength and investment acumen, combined with Forest
City's multifamily development and management expertise, make this a powerful
partnership that we believe will benefit stakeholders of both organizations.
Activating existing entitlement gives our partnership clear advantages in the
marketplace."

By executing on its strategy of securing strategic capital partners, Forest
City expects to create ongoing opportunity for recognizing existing value and
creating new growth for the company.

About Forest City
Forest City Enterprises, Inc. is an NYSE-listed national real estate company
with $10.7 billion in total assets. The company is principally engaged in the
ownership, development, management and acquisition of commercial and
residential real estate and land throughout the United States. For more
information, visit www.forestcity.net.

Safe Harbor Language
Statements made in this news release that state the company's or management's
intentions, hopes, beliefs, expectations or predictions of the future are
forward-looking statements. The company's actual results could differ
materially from those expressed or implied in such forward-looking statements
due to various risks, uncertainties and other factors. Risks and factors that
could cause actual results to differ materially from those in the
forward-looking statements include, but are not limited to, the impact of
current lending and capital market conditions on its liquidity, ability to
finance or refinance projects and repay its debt, the impact of the current
economic environment on its ownership, development and management of its real
estate portfolio, general real estate investment and development risks,
vacancies in its properties, the strategic decision to reposition or divest
portions of the company's land business, further downturns in the housing
market, competition, illiquidity of real estate investments, bankruptcy or
defaults of tenants, anchor store consolidations or closings, international
activities, the impact of terrorist acts, risks associated with an investment
in a professional sports team, its substantial debt leverage and the ability
to obtain and service debt, the impact of restrictions imposed by its credit
facility and senior debt, exposure to hedging agreements, the level and
volatility of interest rates, the continued availability of tax-exempt
government financing, the impact of credit rating downgrades, effects of
uninsured or underinsured losses, effects of a downgrade or failure of its
insurance carriers, environmental liabilities, conflicts of interest, risks
associated with the sale of tax credits, risks associated with developing and
managing properties in partnership with others, the ability to maintain
effective internal controls, compliance with governmental regulations,
increased legislative and regulatory scrutiny of the financial services
industry, volatility in the market price of its publicly traded securities,
inflation risks, litigation risks, cybersecurity risks and cyber incidents, as
well as other risks listed from time to time in the company's SEC filings,
including but not limited to, the company's annual and quarterly reports.

SOURCE Forest City Enterprises, Inc.

Website: http://www.forestcity.net
Contact: Robert O'Brien, Executive Vice President - Chief Financial Officer,
+1-216-621-6060 or Jeff Linton, Senior Vice President - Corporate
Communication, +1-216-621-6060