Forest City Plans to Explore Alternatives for Retail Propertiesby
Forest City Realty Trust Inc. said it’s exploring strategic alternatives for its retail properties, and would use proceeds from any real estate sales for apartment and office buildings.
The retail holdings include 14 regional malls around the U.S. and 19 specialty retail centers located primarily in New York City, the company said Monday in a statement. The Cleveland-based firm’s retail properties include Brooklyn’s Atlantic Terminal Mall, stores on 42nd Street near Times Square in Manhattan, enclosed regional malls in California and Pennsylvania, and smaller neighborhood shopping centers, according to Forest City’s website.
“We intend to look at a range of options,” Chief Executive Officer David J. LaRue said in the statement. Assuming properties are sold, “our intent would be to redeploy the value from our retail portfolio into apartment and office assets.”
Forest City, which oversees $8.9 billion of real estate assets, plans to complete the review by the first quarter of next year, according to the statement. The company plans to retain its ownership interest in Ballston Quarter in Arlington, Virginia, which is being redeveloped into a mixed-use property. Three years ago, Forest City sold a 49 percent stake in eight malls to Australia’s QIC Global Real Estate, the property arm of Queensland state’s asset management company, for $435.6 million.