CLEVELAND, Jan. 8, 2015 /PRNewswire/ -- Forest City Enterprises, Inc. (NYSE: FCEA and FCEB) today announced the closing of three additional investment allocations – in Washington, D.C., Philadelphia, and Oakland, Calif. – as part of its $400 million residential real estate development fund with the Arizona State Retirement System (ASRS). All three of the closings were completed before yearend 2014.
"These closings reflect our continued strong partnership with ASRS, and the execution of our strategy of working closely with select capital partners to activate entitled development opportunities in strong markets," said David LaRue, Forest City president and chief executive officer. "These also reflect the variety of investment opportunities available to the fund, with one investment in a conventional entitled development project, one investment in an operating property as a springboard to additional new development, and one allocation to invest in a mature, productive operating property."
In Washington, D.C., the fund closed an investment in 1001 4th Street, SW, the first Forest City-developed residential component of Waterfront Station, the mixed-use redevelopment of the former Waterside Mall site in Southwest D.C. 1001 4th Street, SW, which is expected to break ground in early January, will feature 365 market-rate apartments, underground parking, a rooftop pool, clubhouse and landscaped courtyard. Completion is expected in mid-2016.
In Philadelphia, the fund closed an investment in Museum Towers, an existing 286-unit apartment community in Center City, in which Forest City had been the 100 percent equity owner. The fund's investment in Museum Towers facilitates development of Museum Towers II, an adjacent 286-unit apartment project and 400-space parking garage, in which the fund is also planning to invest. The additional investment by the fund in Museum Towers II is expected to close in the first quarter of 2015 with commencement of construction soon thereafter.
In Oakland, the fund invested in The Uptown, Forest City's existing 665-unit apartment community in the city's arts and entertainment district. A LEED Silver certified apartment community, The Uptown includes a public park and was constructed on an underutilized, four-city block brownfield location in partnership with the City of Oakland. Prior to the fund's investment, Forest City had been the 100 percent equity owner of The Uptown.
When paired with conventional project financing, the $400 million fund is expected to generate approximately $1 billion in new multifamily residential development, with 75 percent of the equity provided by ASRS and 25 percent by Forest City. With today's announcements, the fund is currently invested in seven projects in San Francisco, Washington, D.C., Los Angeles, Philadelphia and Oakland. Forest City and ASRS expect to identify one additional development opportunity that will complete the fund.
About Forest City
Forest City Enterprises, Inc. is an NYSE-listed national real estate company with $8.2 billion in total 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 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 commercial real estate portfolio, general real estate investment and development risks, using modular construction as a new construction methodology and investing in a facility to produce modular units, vacancies in its properties, 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 of owning and operating an arena, 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, changes in federal, state or local tax laws, 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.