Forest City completes two non-core asset dispositions
- Sales reflect continued execution of core market and debt reduction strategies
CLEVELAND, Dec. 4, 2014 /PRNewswire/ -- Forest City Enterprises, Inc., (NYSE: FCEA and FCEB) today announced that it has completed the sale of the Halle Building, a 409,000-square-foot office building in downtown Cleveland, and Forest Trace, a 322-unit independent senior apartment community in Lauderhill, Florida.
"These sales, which include our last assisted-living apartment community, reflect continued execution of our strategy to narrow the focus our operating portfolio, monetize non-core assets and use proceeds to further reduce leverage and selectively re-invest in opportunities in core markets," said David J. LaRue, Forest City president and chief executive officer.
The Halle Building, a historic former department store that was acquired by Forest City in 1986, was purchased by affiliates of K&D Management, LLC, for $20.0 million, generating net proceeds to Forest City of approximately $8.3 million. K&D plans to convert the property to rental apartments with retail, office and restaurant space on the first two floors.
Forest Trace, an independent senior retirement community that includes 40 licensed assisted-living beds, was purchased by Pacifica Lauderhill, LLC, in a sale that generated net cash proceeds of $18.5 million to Forest City. The buyer also assumed the existing mortgage on the property. The property was originally developed in 1989 and was acquired by a subsidiary of Forest City in 2000.
Since the beginning of 2012, Forest City has completed the disposition or partial disposition of 48 primarily non-core assets, generating cash proceeds of approximately $945.4 million. Over that same period, the company has reduced total debt by approximately $1.9 billion and annual fixed charges by nearly $300 million.
About Forest City
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/forest-city-completes-two-non-core-asset-dispositions-300005276.html
SOURCE Forest City Enterprises, Inc.