Forest City completes recapitalization of New York by Gehry at Eight Spruce Street luxury residential tower

 Forest City completes recapitalization of New York by Gehry at Eight Spruce
                       Street luxury residential tower

- Transaction values 76-story, 898-unit high rise at $1.05 billion

- TIAA-CREF becomes 49 percent equity owner

PR Newswire

CLEVELAND, Dec. 21, 2012

CLEVELAND, Dec. 21, 2012 /PRNewswire/ -- Forest City Enterprises, Inc. (NYSE:
FCEA and FCEB) today announced the completion of a recapitalization of New
York by Gehry at Eight Spruce Street, the company'sFrank Gehry-designed,
luxury residential tower in Lower Manhattan.

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

The transaction values the 76-story, 898-unit high rise at $1.05 billion.
TIAA-CREF, a national financial services organization, becomes a 49 percent
equity owner in the residential portion of the building, with original
partners Forest City and National Real Estate Advisors (NREA) retaining 26 and
25 percent stakes, respectively. Prior to the recapitalization, Forest City
and NREA owned 51 and 49 percent, respectively. Forest City expects to
receive proceeds from the recapitalization of approximately $120 million.

"We're thrilled to welcome TIAA-CREF into the ownership of this world-class
property," said David J. LaRue, Forest City president and chief executive
officer. "This transaction, and the commitment of a partner of the stature of
TIAA-CREF, is testament to the tremendous value created by the development of
this unique property. In less than two years since opening, New York by Gehry
at Eight Spruce Street has become world-renowned for its striking design,
receiving international acclaim and major architecture awards, and has become
a symbol for the resurgence of Lower Manhattan. We salute our New York team,
led by Bruce Ratner, for the tremendous effort involved in planning and
executing this outstanding project. This outcome is a direct reflection of
their skill, creativity and dedication."

"We believe that high-quality, multi-family assets in cities with the
strongest demographics such as New York can be powerful additions to our
well-diversified real estate portfolios," said Phil McAndrews, head of real
estate transactions and joint ventures, TIAA-CREF. "The opportunity to invest
in state-of-the-art, high-rise urban apartment complexes can be rare and we
look forward to working with Forest City to maximize the value of this asset
for our clients over the long term."

Jeffrey J. Kanne, President and CEO of National Real Estate Advisors, said,
"We are very pleased to be broadening our partnership to include one of the
country's preeminent real estate investors. We believe the high quality of
our new partnership is reflective of the extraordinary quality of New York by
Gehry and we look forward to working together for many years to come."

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 http://www.forestcity.net.

Safe Harbor Language

Statements made in this news release that state the Forest City Enterprises'
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.

TIAA-CREF Individual & Institutional Services, LLC and Teachers Personal
Investors Services, Inc., members FINRA, distribute securities products.

Past performance does not guarantee future results.

Real estate investments are subject to various risks, including fluctuations
in property values, higher expenses or lower income than expected, and
potential environmental problems and liability. 

The TIAA General Account is an insurance company account and does not present
an investment return, and is not available to investors.

C8192

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