CLEVELAND, OH - Forest City Enterprises, Inc. (NYSE: FCEA and FCEB) today announced that a subsidiary has closed the sale of its 50 percent interest in Met Lofts, a 264-unit apartment property in Los Angeles, to the California Public Employees Retirement System (CalPERS). Forest City and CalPERS were equal partners in the property, and the sale was pursuant to an existing buy/sell agreement between the parties.
Source: Forest City
The price reflects a total property value of $73.6 million or approximately $280,000 per unit, and a cap rate of 4.5 percent based on 2010 net operating income for the property. The company expects the sale to generate proceeds of approximately $13.2 million, including the return of subordinated capital in the partnership. Forest City developed Met Lofts and opened it in 2005. The eight-story, boutique loft apartment property is located one block from the Staples Center in downtown Los Angeles.
"Met Lofts is a great property in a dynamic part of downtown Los Angeles," said Kevin Ratner, president of Forest City West. "The sale reflects the value we and our partner have created, as well as Forest City's strategy of selectively harvesting that value from within our portfolio. We continue to have a strong presence on the West Coast, with offices in Los Angeles and San Francisco, along with an extensive portfolio of multifamily, retail and office properties."
Forest City Enterprises, Inc. is an NYSE-listed national real estate company with $11.8 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.