Search
 

Forest City Forms $668M JV

CAMBRIDGE, MA-Health Care REIT is acquiring 49% interest in seven University Park life sciences buildings.

By Ryan Clark | Updated on February 23, 2010

CAMBRIDGE, MA-Cleveland-based Forest City Enterprises, Inc. is forming a joint venture with Health Care REIT, Inc. revolving around seven life science buildings at University Park here. Health Care will obtain 49% interest of the seven buildings by investing $170 million in cash, after which the joint venture will assume $320 million of secured debt on the property.

Subsidiaries of Forest City will retain 51% of the seven buildings and serve as asset and property manager for the JV. Six buildings will be involve din the first-stage closing worth $610 million with the $58-million seventh building close coming in Q2 of 2010. The buildings are part of the larger University Park complex and are currently 100% leased.

Forest City tells Globest.com that the main driver was to create liquidity, which has been part of its strategy outlined in 2008. However, market conditions were not amenable for this until recently. Charles A. Ratner, president and CEO of Forest City, says in a statement, “It also positions us with a strong capital partner who can help us grow our life science business.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.