Thursday, March 8, 2012

Forest City Announces Sale of Quebec Square Retail Center in Denver



CLEVELAND, OH /PRNewswire/ -- Forest City Enterprises, Inc., (NYSE: FCEA and FCEB)  announced the closing of the sale of Quebec Square (top left photo), a retail "power" center in Denver, to Quebec Square, CMH, LLC. 

The sale price of $34.25 million generated net proceeds of approximately $8 million, representing an effective cap rate of 6.4 percent based on 2011 net operating income. 

"We're pleased to complete this sale," said David J. LaRue (middle right photo), Forest City president and chief executive officer.  "The disposition of this center is part of our retail strategy to focus on our regional malls and anchored lifestyle centers around the country, as well as urban retail in our New York core market." 

The company plans to use proceeds from this and future dispositions to pay down debt, reinvest in its portfolio, and selectively activate new development with a focus on existing entitlement. Forest City will continue to manage Quebec Square on behalf of the new owner. 

Quebec Square is located at the corner of Quebec Street and Smith Road in Denver, adjacent to Stapleton (lower left photo), Forest City's mixed-use redevelopment community. 

The center has a total of 739,000 square feet of space, with gross leaseable area (GLA) of approximately 217,000 square feet, including current tenants Famous Footwear, Ross Dress for Less, Big 5 Sporting Goods, Office Depot and PetSmart.  Anchors (not included in the GLA) are WalMart, Home Depot and Sam's Club.

 Contact:

 Robert O'Brien, Executive Vice President - Chief Financial Officer,
+1-216-621-6060;
Jeff Linton, Senior Vice President - Corporate Communication,
+1-216-621-6060

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