A spokesperson for the company tells GlobeSt.com that all of the buildings except one can be classified as class A. "The other is more appropriately defined as class B but they are all high quality assets so we do not see the need for any capital investment or renovations in the portfolio right now."
In the statement, CEO and president Charles A. Ratner, says that the office acquisition is typical of the company's City Strategy in which "Forest City is able to enter core urban markets with strong demographics by introducing one property type and then penetrating the market with additional real estate projects.
"Richmond is a growth market for us. We now have an office portfolio in Richmond, in addition to our residential development of 472 apartment units at River Lofts at Tobacco Row, the 1.2-million-sf Short Pump Town Center retail center that opened in 2003, and the 900,000-sf Shops at White Oak Village retail center that is under construction." Last week, GlobeSt.com reported that Forest City and partner developer Pruitt Associates inked an aggregate of 626,000 sf in leases for the $161-million center.
The Grubb & Ellis|Harrison & Bates's Richmond Office Market Trends report for Q2 07 noted that there were two office portfolio sales pending for the market, although it did not specify whether the Forest City transaction was one. Recent office trades have been pricing higher and higher the report noted, citing $162 per sf and $146 per sf as recent examples.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
