Forest City Completes Two Asset Dispositions in Non-Core Markets

David J. LaRue

CLEVELAND, Jan. 3, 2013 /PRNewswire/ -- Forest City Enterprises, Inc., (NYSE: FCEA and FCEB) today announced that it recently completed the disposition of two assets in non-core markets.

In Florida, the company closed the sale of Emerald Palms, a 505-unit apartment community in the Kendall/South Dade submarket in southwest Miami, to Grand Peaks Properties for approximately $70.5 million, reflecting a cap rate of approximately 5.0 percent based on estimated 2012 net operating income.  

The disposition generated net cash proceeds to Forest City of approximately $45.2 million.

Fairmont Plaza, San Jose, CA

In San Jose, California, the company completed the sale of Fairmont Plaza, a 17-story, 405,000-square-foot downtown office building, to CBRE Global Investors for approximately $93.1 million, representing a cap rate of approximately 7.0 percent based on estimated 2012 net operating income.  The sale generated net cash proceeds to Forest City of approximately $28.1 million. 

"We continue to execute on our strategy of focusing on our primary core markets - New York, Washington, D.C., Boston, Denver, Dallas, Los Angeles and San Francisco," said David J. LaRue, Forest City president and chief executive officer. 

Emerald Palms Apartments, Kendall, FL

"We will use liquidity from dispositions such as these to continue to reduce debt and improve our balance sheet, invest in our mature portfolio and activate entitled development opportunities in core markets."  

For a complete copy of the company’s news release, please contact:

 Robert O'Brien,

Executive Vice President

Chief Financial Officer

 +1-216-621-6060; or

 Jeff Linton,

Senior Vice President

 Corporate Communication

 +1-216-621-6060

Web Site: http://www.forestcity.net