Forest City completes sale of Sheraton Station Square Hotel in Pittsburgh
Disposition generates approximately $18.5 million in net cash proceeds
CLEVELAND, July 19, 2013
CLEVELAND, July 19, 2013 /PRNewswire/ --Forest City Enterprises, Inc., (NYSE:
FCEA and FCEB) today announced that it has completed the disposition of the
Sheraton Station Square, a 399-room hotel in Pittsburgh, to Station Square
Pittsburgh Hotel LLC, a joint venture led by Pyramid Hotel Group and including
an affiliate of Glenmont Capital Management, LLC. Pyramid will operate the
hotel under a long-term Sheraton franchise agreement with Starwood Hotels.
The selling price was $61 million, generating net cash proceeds to Forest City
of approximately $18.5 million.
"We're pleased to complete this transaction with an experienced owner/operator
such as Pyramid and their joint venture partners," said David J. LaRue, Forest
City president and chief executive officer. "We continue to execute our
strategy of exiting non-core products and markets, and using liquidity from
dispositions to further improve our balance sheet, invest in our mature
portfolio and activate entitled development opportunities in core markets."
The Sheraton Station Square Hotel, which features over 30,000 square feet of
indoor meeting space, is located adjacent to historic Station Square, Forest
City's retail/entertainment complex along the Monongahela River in downtown
Pittsburgh. The Plasencia Group represented Forest City in the transaction.
"We are excited to complete this transaction with Forest City and acquire a
premier downtown Pittsburgh asset," said Jim Dina, chief operating officer of
Pyramid Hotel Group. "Pittsburgh is a highly stable lodging market and the
Sheraton Station Square offers an unmatched guest experience within the
Station Square mixed-use development. The many planned renovations to the
hotel promise to assist our dedicated staff in delivering a superior level of
service for residents and leisure, corporate, and group travelers. We look
forward to continuing the many partnerships that Forest City has fostered
within the Pittsburgh community."
About Forest City
Forest City Enterprises, Inc. is an NYSE-listed national real estate company
with $10.6 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.
About Pyramid Hotel Group
Pyramid Hotel Group is a privately-held, Boston-based hotel company with 54
hotels and resorts under hotel management and asset management, comprising
more than 20,000 rooms and approximately 8,500 employees. Pyramid Hotel Group,
ranked among the largest U.S. hotel management companies by independent
sources, provides hotel management, resort management, asset management, and
project management services to a broad array of hotel assets. Pyramid Hotel
Group is a franchisee of all the major hotel brand companies and an operator
of independent four-and five-star hotels and resorts. Additional information
is available at www.pyramidhotelgroup.com
About Glenmont Capital Management
Founded in 2000 by Lawrence A. Kestin, Glenmont Capital Management, LLC
("Glenmont") is a New York-based real estate private equity fund manager
focused on real estate investments throughout the United States. Glenmont
manages a series of closed-end, institutionally backed investment funds
seeking both value-add and opportunistic investments in distressed and
underperforming real estate, select development opportunities, non-performing
loans and real estate operating companies. Additional information is available
SOURCE Forest City Enterprises, Inc.
Contact: AT THE COMPANY, Robert O'Brien, Executive Vice President - Chief
Financial Officer, 216-621-6060, or Jeff Linton, Senior Vice President -
Corporate Communication, 216-621-6060; ON THE WEB: www.forestcity.net
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