Company also updates overall 2008-2009 maturitiesCLEVELAND, OH and BROOKLYN, NY /PRNewswire-FirstCall/ -- Forest City Enterprises, Inc. (NYSE:FCEA)(NYSE:and)(NYSE:FCEB) announced that it's New York-based subsidiary, Forest City Ratner Companies, has closed on $167 million in construction financing for 80 DeKalb,(top left and middle right photos) an a 335,000-square-foot residential building on DeKalb Avenue in downtown Brooklyn.
The 34-story, Costas Kondylis-designed building is the first residential tower constructed by Forest City in Brooklyn.
It is designed to achieve LEED certification and will include 73 affordable and 292 market-rate rental units, making it the first 80/20 development in Brooklyn financed with bonds issued by the New York State Housing Finance Agency.
"This is an exciting project," said Charles A. Ratner,(top right photo) Forest City president and chief executive officer. "It is a magnificent buil
ding at a great location that will provide both affordable and market-rate apartment homes. "It's also a tribute to our New York team and the relationships they have built in both the public-sector and private-sector financing community."
The New York State Housing Finance Agency selected 80 DeKalb to receive $109.5 million in tax-exempt bonds and $27.5 million in taxable
bonds. The lending institutions involved in the transaction were Wachovia Bank, N.A., and Helaba (both co-agents providing the credit enhancement to the $137 million in bonds issued by HFA), as well as the National Electrical Benefit Fund, which provided a $10 million mezzanine loan and $20 million of credit enhancement.
Major construction on the building began in July and it is expected to open for leasing during the summer of 2009. Update on 2008 and 2009 maturities
Along with the announcement of the 80 DeKalb financing, the Company also provided an update on the status of upcoming loan maturiti
es due in both 2008 and 2009. Of total 2008 maturities of $903 million at the Company's pro-rata share ($842 million at full consolidation) reported on January 31, 2008, more than 90 percent have been addressed to date through closed loans, scheduled amortization, committed refinancings or available extensions.
In other 2008 financings, the Company has also secured to date more than $1.3 billion at the Company's share ($1.1 billion at full consolidation) in closed or committed loans for financings related to its development and acquisition pipeline in addition to early financings of future loan maturities on existing properties. (Downtown Brooklyn, middle right photo)
Looking ahead to 2009, of the $690 million in scheduled maturities at the Company's share ($482 million at full consolidation) reported on January 31, 2008, approximately 60 percent have been addressed to date, either through closed loans, scheduled amortization or available extensions"We continue to manage our maturities effectively, recycling capital from our portfolio where prudent to apply to other strategic uses," Ratner said. "We also continue to achieve success in accessing non-recourse financing to fund development 
and strategic acquisitions based on our track record and long-term relationships with lenders.
and strategic acquisitions based on our track record and long-term relationships with lenders. "Financing continues to be available for well-conceived and well-sponsored projects and properties in solid markets with good demographics, both in our portfolio and in our development pipeline."
Forest City Enterprises, Inc., is a $10.5 billion NYSE-listed national real estate company. The Company is principally engaged in the ownership, development, management and acquisition of commercial and residential real estate and land throughout the United States.
CONTACTS:
Robert O'Brien, Executive Vice President - Chief FinancialOfficer, or Tom Kmiecik, Assistant Treasurer, or Jeff Linton, Vice President -Corporate Communication, all of Forest City Enterprises, Inc., +1-216-621-6060
Web site: http://www.forestcity.net/
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