Source: Forest City / #Military #Housing
CLEVELAND, OH - Forest City Realty Trust announced that it completed the previously announced sale of its military housing business to Hunt Companies, Inc. The gross selling price was $208.8 million and is expected to generate net proceeds to Forest City of approximately $200 million after customary closing and other transaction costs.
"This important transaction aligns with our strategic focus on core retail, office and apartment assets in strong urban markets," said David J. LaRue, Forest City president and chief executive officer. "We anticipate using the proceeds primarily to further the significant progress we've made on deleveraging our balance sheet and improving our debt metrics. I thank all of our associates who built the military housing business into the strong asset it is today and who serve America's military families with dedication and professionalism."
The military housing business consists of fee-income streams from property management, asset management and construction and development at family housing communities for the Navy, Marines and Air Force, as well as minority equity interest in the real estate at each location. It includes approximately 14,500 housing units comprised of single-family homes, duplexes and triplexes at bases in Hawaii, Tennessee, Illinois, Indiana, Washington, South Carolina and Mississippi, as well as at the Air Force Academy in Colorado. As part of the transaction, Hunt is in the process of extending employment offers to the majority of Forest City's associates currently in the military housing business.