ARLINGTON, VA–Last month in its quarterly earnings report, the Cleveland, Ohio-based Forest City Realty Trust announced that, as part of its previously announced strategic review of its retail portfolio, it has signed non-binding letters of intent with its existing partners — the Australian fund QIC in its regional malls, and Madison International for its New York City specialty retail portfolio — to sell the assets.
The company said it expects the transactions to reflect an average cap rate of approximately 5% on 2016 net operating income of approximately $110 million and total debt of approximately $1 billion. If the sales go through, they will do so in tranches over the next 24 to 36 months, beginning this year.
What it didn't say was which assets it would sell and which it would keep — such as Ballston Quarter in Arlington, Va. It was only last year that Forest City sold QIC a 49% stake in the 578,000-square foot retail mall under a regional joint venture.
CEO Bob O'Brien tipped his hand a bit in comments at the recent Citi's Global Property CEO Conference Forest City Realty Trust when he said that Ballston is “likely an asset that we will keep.”
QIC will remain the active manager of the retail, he said.
ARLINGTON, VA–Last month in its quarterly earnings report, the Cleveland, Ohio-based Forest City Realty Trust announced that, as part of its previously announced strategic review of its retail portfolio, it has signed non-binding letters of intent with its existing partners — the Australian fund QIC in its regional malls, and Madison International for its
The company said it expects the transactions to reflect an average cap rate of approximately 5% on 2016 net operating income of approximately $110 million and total debt of approximately $1 billion. If the sales go through, they will do so in tranches over the next 24 to 36 months, beginning this year.
What it didn't say was which assets it would sell and which it would keep — such as Ballston Quarter in Arlington, Va. It was only last year that Forest City sold QIC a 49% stake in the 578,000-square foot retail mall under a regional joint venture.
CEO Bob O'Brien tipped his hand a bit in comments at the recent Citi's Global Property CEO Conference Forest City Realty Trust when he said that Ballston is “likely an asset that we will keep.”
QIC will remain the active manager of the retail, he said.
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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.
