Source: Forest City Enterprises / #Multifamily #Apartments
CLEVELAND, OH - Forest City Enterprises, Inc. and the Arizona State Retirement System (ASRS) announced the creation of a strategic capital partnership and a $400 million equity fund that will invest in multifamily development projects primarily in five core markets: New York City, Washington, D.C., Boston, Los Angeles, and San Francisco.
Funding for the venture will be 75 percent from ASRS and 25 percent from Forest City. The company estimates that more than two-thirds of its equity contribution to the fund is already represented by entitled development opportunities on its balance sheet. Equity from the fund will be paired with conventional project financing for an estimated aggregate development investment of approximately $800 million to $1 billion. Forest City will serve as fund manager.
"We are honored to have the Arizona State Retirement System as our partner in this new fund," said David J. LaRue, Forest City president and chief executive officer. "Their financial strength and investment acumen, combined with Forest City's multifamily development and management expertise, make this a powerful partnership that we believe will benefit stakeholders of both organizations. Activating existing entitlement gives our partnership clear advantages in the marketplace."
By executing on its strategy of securing strategic capital partners, Forest City expects to create ongoing opportunity for recognizing existing value and creating new growth for the company.
Forest City Enterprises, Inc. is an NYSE-listed national real estate company with $10.7 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.