CLEVELAND, Dec. 2, 2010 /PRNewswire-FirstCall/ -- Forest City Enterprises, Inc., (NYSE: FCEA and FCEB) today announced that a subsidiary, together with its partners, has closed the sale of portions of Millender Center, a mixed-use property in downtown Detroit, to Riverfront Holdings, Inc. (RHI). The $37.8 million transaction is expected to generate net proceeds to Forest City of approximately $14.4 million, after retirement of debt and other expenses.
The sale includes a 1,850-space parking facility, 242-room Courtyard by Marriott hotel, approximately 30,000 square feet of retail space and 9,800 square feet of office space. Forest City and its partners retain ownership and management of Millender Center Apartments, a 339-unit apartment community that is part of the overall complex.
The sold assets had been leased to RHI, with an option to buy, since 1998. Under the terms of the lease, RHI received all operating income from those assets. The sale transaction represents the final exercise of RHI's purchase option.
Millender Center, located adjacent to the Renaissance Center in downtown Detroit, was constructed in 1984.
About Forest City
Forest City Enterprises, Inc. is an NYSE-listed national real estate company with $11.8 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.
SOURCE Forest City Enterprises, Inc.