CLEVELAND, March 28, 2018 /PRNewswire/ -- Forest City Realty
Trust, Inc. (NYSE: FCEA) today announced that it has completed the
sale of 461 Dean Street, a 363-unit apartment community in
Brooklyn, New York, to an
international real estate manager. The selling price was
$156 million, reflecting a cap rate
of approximately 4.5 percent on estimated 2018 net operating
income. The sale is expected to generate net proceeds to Forest
City of approximately $150
million.
"We're pleased with this transaction, which achieved attractive
pricing for this recently stabilized asset, and enables the company
to generate significant liquidity to further our deleveraging
efforts and other strategic uses," said David J. LaRue, Forest City president and chief
executive officer. "The economics of the sale also reflect the
continued health of the Brooklyn
multifamily rental market, and the continued value-creation
opportunity in the market."
The asset was 100% owned by Forest City and was not part of the
joint venture with Greenland USA
that is continuing the development of the Pacific Park Brooklyn
mixed-use project. 461 Dean Street, which began phased opening in
the third quarter of 2016, contains 50 percent affordable units. It
was constructed using modular building technology and is among the
tallest modular buildings in the world.
About Forest City
Forest City Realty Trust, Inc. is a
NYSE-listed national real estate company with $8.1 billion in consolidated assets. The Company
is principally engaged in the ownership, development, management
and acquisition of commercial and residential real estate
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 company's ability to carry out
future transactions and strategic investments, as well as the
acquisition related costs, unanticipated difficulties realizing
benefits expected when entering into a transaction, the company's
ability to qualify or to remain qualified as a REIT, its ability to
satisfy REIT distribution requirements, the impact of issuing
equity, debt or both, and selling assets to satisfy its future
distributions required as a REIT or to fund capital expenditures,
future growth and expansion initiatives, the impact of the amount
and timing of any future distributions, the impact from complying
with REIT qualification requirements limiting its flexibility or
causing it to forego otherwise attractive opportunities beyond
rental real estate operations, the impact of complying with the
REIT requirements related to hedging, its lack of experience
operating as a REIT, legislative, administrative, regulatory or
other actions affecting REITs, including positions taken by the
Internal Revenue Service, the possibility that the company's Board
of Directors will unilaterally revoke its REIT election, the
possibility that the anticipated benefits of qualifying as a REIT
will not be realized, or will not be realized within the expected
time period, the impact of current lending and capital market
conditions on its liquidity, its ability to finance or refinance
projects or repay its debt, the impact of the slow economic
recovery on the ownership, development and management of its
commercial real estate portfolio, general real estate investment
and development risks, litigation risks, vacancies in its
properties, risks associated with developing and managing
properties in partnership with others, competition, its ability to
renew leases or re-lease spaces as leases expire, illiquidity of
real estate investments, its ability to identify and transact on
chosen strategic alternatives for a portion of its retail
portfolio, bankruptcy or defaults of tenants, anchor store
consolidations or closings, the impact of terrorist acts and other
armed conflicts, its substantial debt leverage and the ability to
obtain and service debt, the impact of restrictions imposed by the
company's revolving credit facility, term loan and senior debt,
exposure to hedging agreements, the level and volatility of
interest rates, the continued availability of tax-exempt government
financing, its ability to receive payment on the notes receivable
issued by Onexim in connection with their purchase of our interests
in the Barclays Center and the Nets, the impact of credit rating
downgrades, effects of uninsured or underinsured losses, effects of
a downgrade or failure of its insurance carriers, environmental
liabilities, competing interests of its directors and executive
officers, the ability to recruit and retain key personnel, risks
associated with the sale of tax credits, downturns in the housing
market, the ability to maintain effective internal controls,
compliance with governmental regulations, increased legislative and
regulatory scrutiny of the financial services industry, changes in
federal, state or local tax laws and international trade
agreements, volatility in the market price of its publicly traded
securities, inflation risks, cybersecurity risks, cyber incidents,
shareholder activism efforts, conflicts of interest, risks related
to its organizational structure including operating through its
Operating Partnership and its UPREIT structure, 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.
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SOURCE Forest City Realty Trust, Inc.