CLEVELAND, Jan. 3, 2013 /PRNewswire/ -- Forest City Enterprises, Inc., (NYSE: FCEA and FCEB) today announced that it recently completed the disposition of two assets in non-core markets.
In Florida, the company closed the sale of Emerald Palms, a 505-unit apartment community in the Kendall/South Dade submarket in southwest Miami, to Grand Peaks Properties for approximately $70.5 million, reflecting a cap rate of approximately 5.0 percent based on estimated 2012 net operating income. The disposition generated net cash proceeds to Forest City of approximately $45.2 million.
In San Jose, California, the company completed the sale of Fairmont Plaza, a 17-story, 405,000-square-foot downtown office building, to CBRE Global Investors for approximately $93.1 million, representing a cap rate of approximately 7.0 percent based on estimated 2012 net operating income. The sale generated net cash proceeds to Forest City of approximately $28.1 million.
"We continue to execute on our strategy of focusing on our primary core markets – New York, Washington, D.C., Boston, Denver, Dallas, Los Angeles and San Francisco," said David J. LaRue, Forest City president and chief executive officer. "We will use liquidity from dispositions such as these to continue to reduce debt and improve our balance sheet, invest in our mature portfolio and activate entitled development opportunities in core markets."
Including these dispositions, since the beginning of its fiscal 2012, Forest City has completed 12 dispositions, including both fully consolidated and unconsolidated (equity-method) assets, generating more than $125 million in net cash proceeds.
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 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 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.
SOURCE Forest City Enterprises, Inc.