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| New York by Gehry at Eight Spruce Street Photo Courtesy Gehry Partners Manhattan |
CLEVELAND, Dec. 21, 2012 /PRNewswire/ -- Forest City
Enterprises, Inc. (NYSE: FCEA and FCEB) today announced the completion of a
recapitalization of New York by Gehry at Eight Spruce Street, the company's
Frank Gehry-designed, luxury residential tower in Lower Manhattan.
The transaction values the 76-story, 898-unit high rise at
$1.05 billion.
TIAA-CREF, a national financial services organization, becomes a
49 percent equity owner in the residential portion of the building, with
original partners Forest City and National Real Estate Advisors (NREA)
retaining 26 and 25 percent stakes, respectively.
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| David J. LaRue |
Prior to the recapitalization, Forest City and NREA owned 51 and
49 percent, respectively. Forest City
expects to receive proceeds from the recapitalization of approximately $120
million.
"We're thrilled to welcome TIAA-CREF into the ownership
of this world-class property," said David J. LaRue, Forest City
president and chief executive officer. "This transaction, and the
commitment of a partner of the stature of TIAA-CREF, is testament to the
tremendous value created by the development of this unique property.
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| Bruce C. Ratner |
“In less than two years since opening, New York by Gehry at
Eight Spruce Street has become world-renowned for its striking design,
receiving international acclaim and major architecture awards, and has become a
symbol for the resurgence of Lower Manhattan.
“We salute our New York team, led by Bruce Ratner,
for the tremendous effort involved in planning and executing this outstanding
project. This outcome is a direct reflection of their skill, creativity and
dedication."
"We believe that high-quality, multi-family assets in
cities with the strongest demographics such as New York can be powerful
additions to our well-diversified real estate portfolios," said Phil
McAndrews, head of real estate transactions and joint ventures,
TIAA-CREF.
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| Philip J. McAndrews |
"The opportunity to
invest in state-of-the-art, high-rise urban apartment complexes can be rare and
we look forward to working with Forest City to maximize the value of this asset
for our clients over the long term."
Jeffrey J. Kanne, President and CEO of National Real
Estate Advisors, said, "We are very pleased to be broadening our
partnership to include one of the country's preeminent real estate
investors. We believe the high quality
of our new partnership is reflective of the extraordinary quality of New York
by Gehry and we look forward to working together for many years to come."
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
