Breaking News

Tweet TWEET

Forest City Completes Two Asset Dispositions in Non-Core Markets

       Forest City Completes Two Asset Dispositions in Non-Core Markets

Sales generate $73.3 million in total net cash proceeds

PR Newswire

CLEVELAND, Jan. 3, 2013

CLEVELAND, Jan. 3, 2013 /PRNewswire/ --Forest City Enterprises, Inc., (NYSE:
FCEA and FCEB) today announced that it recently completed the disposition of
two assets in non-core markets.

In Florida, the company closed the sale of Emerald Palms, a 505-unit apartment
community in the Kendall/South Dade submarket in southwest Miami, to Grand
Peaks Properties for approximately $70.5 million, reflecting a cap rate of
approximately 5.0 percent based on estimated 2012 net operating income. The
disposition generated net cash proceeds to Forest City of approximately $45.2
million.

In San Jose, California, the company completed the sale of Fairmont Plaza, a
17-story, 405,000-square-foot downtown office building, to CBRE Global
Investors for approximately $93.1 million, representing a cap rate of
approximately 7.0 percent based on estimated 2012 net operating income. The
sale generated net cash proceeds to Forest City of approximately $28.1
million.

"We continue to execute on our strategy of focusing on our primary core
markets – New York, Washington, D.C., Boston, Denver, Dallas, Los Angeles and
San Francisco," said David J. LaRue, Forest City president and chief executive
officer. "We will use liquidity from dispositions such as these to continue
to reduce debt and improve our balance sheet, invest in our mature portfolio
and activate entitled development opportunities in core markets." 

Including these dispositions, since the beginning of its fiscal 2012, Forest
City has completed 12 dispositions, including both fully consolidated and
unconsolidated (equity-method) assets, generating more than $125 million in
net cash proceeds.

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
 
Press spacebar to pause and continue. Press esc to stop.