Forest City Completes Lease Agreement With Rock Ohio Caesars Cleveland to House Phase I of a New Casino in Downtown Cleveland's Higbee Building

CLEVELAND, Feb. 23, 2011 /PRNewswire/ -- Forest City Enterprises, Inc., (NYSE: FCEA and FCEB) today announced the signing of a lease agreement with Rock Ohio Caesars Cleveland LLC for space in the Higbee Building in downtown Cleveland.  Rock Ohio Caesars will use the space for Phase I of its new Horseshoe Casino Cleveland. The Higbee Building is part of Forest City's Tower City Center mixed-use property.

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The five-year lease, which includes extension options, is for approximately 303,000 square feet of space on the lower level and first, second and third floors of the building.  On February 1, Forest City announced the closing of the sale of approximately 16 acres of land to Rock Ohio Caesars for Phase II of the project. The land for Phase II is adjacent to Tower City Center.

"We are pleased to have finalized this lease agreement, accelerating the momentum of bringing a world-class casino to downtown Cleveland," said David J. LaRue, Forest City executive vice president and chief operating officer.  "This initial phase of the casino will serve as an engine to spur further economic development in downtown Cleveland, in addition to having a positive, long-term impact on Tower City."

Rock Ohio Caesars expects Phase I of the casino to open in early 2012, which would make it the first casino in Ohio.

Forest City owns more than 2 million square feet of commercial space at Tower City Center.  The complex includes access to parking for approximately 3,500 automobiles, the 365,000-square-foot Avenue at Tower City retail center, the 206-room Ritz-Carlton, Cleveland hotel, and five office buildings:  the Skylight Office Tower, the Post Office Plaza (formerly the M.K. Ferguson Building), 250 Huron, the Higbee Building, and the landmark Terminal Tower, the site of Forest City's corporate headquarters.

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.  

Safe Harbor Language

Statements made in this news release that state Forest City Enterprises' or Forest City 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, 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, 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, litigation risks, 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.

About Rock Ohio Caesars LLC

Rock Ohio Caesars LLC was formed in December 2010 by Rock Gaming and Caesars Entertainment to develop and operate casinos in the downtowns of both Cleveland and Cincinnati.  The joint venture, which is majority owned by Rock Gaming, has entered into long-term management agreements with subsidiaries of Caesars for management and operation of each of the venture's facilities.  

Safe Harbor Language

Statements made in this news release that state Forest City Enterprises' or Forest City 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, 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, 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, litigation risks, 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.

ON THE WEB

www.forestcity.net

SOURCE Forest City Enterprises, Inc.