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