CLEVELAND, Aug. 2, 2013 /PRNewswire/ -- Forest City Enterprises, Inc., (NYSE: FCEA and FCEB) today announced that the company and its partner have completed the sale of the Liberty Center complex in Pittsburgh to a subsidiary of Starwood Capital Group, a leading global private investment firm. Liberty Center includes the 27-story Federated Investors office tower and the 616-room Westin Convention Center Hotel.
The gross selling price was $135 million, and the transaction generated net cash proceeds, at Forest City's share, of approximately $30 million. Prior to the transaction, the property was owned in a 50/50 partnership by Forest City and Jos. L. Muscarelle, Inc. of Maywood, New Jersey. The hotel will continue to operate as a Westin under a long-term management agreement with Starwood Hotels, which currently manages the hotel and is not affiliated with Starwood Capital. CBRE will manage the office building.
"This transaction continues our strategic effort to exit non-core products and markets, and to use proceeds from dispositions to improve our balance sheet, and invest in our mature portfolio and entitled development opportunities," said David J. LaRue, Forest City president and chief executive officer. "In addition, the Westin Convention Center was the last remaining hotel in our portfolio, so the sale also marks Forest City's exit from that business. Our focus going forward continues to be apartment, retail, office and multi-use projects in our core markets."
In addition to the office building and hotel, Liberty Center includes a 25,000-square-foot retail shopping arcade and underground parking for 479 cars. An enclosed pedestrian bridge connects the hotel with the adjacent David L. Lawrence Convention Center.
Since the beginning of fiscal 2013, the company has completed seven dispositions, including both fully consolidated and unconsolidated (equity-method) assets, generating net cash proceeds of approximately $124 million. In fiscal 2012, Forest City completed 12 dispositions with total net cash proceeds of approximately $129 million.
About Forest City
Forest City Enterprises, Inc. is an NYSE-listed national real estate company with $10.6 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.
SOURCE Forest City Enterprises, Inc.