Tuesday's sale, for which individual closings will occur throughout the first and second quarters pending HUD approval, follows by a year Forest City's exit from the military housing business. The REIT sold approximately 14,500 housing units to Hunt Cos. for $208.8 million in February of 2016.

At the time, Forest City president and CEO David LaRue said the sale to Hunt “aligns with our strategic focus on core retail, office and apartment assets in strong urban markets.” It was a theme reiterated in an investor presentation last month, with Forest City identifying New York City, San Francisco, Los Angeles, Boston, Dallas, Denver and Washington, DC as its seven core markets.

NEW YORK CITY—Jonathan Rose Cos. is expanding its unit count with the acquisition of Forest City Realty Trust's affordable housing business. The 48 properties across seven states, as well as the management company and mortgage company, all will be rebranded with the Rose Communities name.

“Jonathan Rose Cos. has long been a leader in the greening of affordable housing,” says Jonathan F.P. Rose, president and CEO. By expanding social programming at the properties along with taking each of them through the Enterprise Green Community Program, he adds, “We are now pleased to add to this the goal of systemically advancing the social, health and educational outcomes of our residents.”

Valued at more than $500 million, the acquisition includes Forest City Capital, an MAP designated FHA lender, and Forest City's affordable housing property management group. These will be rebranded as Rose Community Capital and Rose Community Management, respectively. Rose Cos. is opening an office in Cleveland, where Forest City is headquartered, and will retain Forest City's property management team consisting of 45 people, as well as the portfolio's field staff of over 200 employees.

The Forest City affordable portfolio encompasses approximately 8,500 units, more than doubling Rose Cos.' unit count to more than 15,000 nationwide and expanding its operations to 15 states and the District of Columbia. The properties acquired range from the company's traditional areas of focus from California to Connecticut, and also add new states to the portfolio, including Ohio and Michigan.

Tuesday's sale, for which individual closings will occur throughout the first and second quarters pending HUD approval, follows by a year Forest City's exit from the military housing business. The REIT sold approximately 14,500 housing units to Hunt Cos. for $208.8 million in February of 2016.

At the time, Forest City president and CEO David LaRue said the sale to Hunt “aligns with our strategic focus on core retail, office and apartment assets in strong urban markets.” It was a theme reiterated in an investor presentation last month, with Forest City identifying New York City, San Francisco, Los Angeles, Boston, Dallas, Denver and Washington, DC as its seven core markets.