Forest City Shuffles Ownership of Two Brooklyn Properties
In another deal announced today, Forest City Realty Trust and Greenland USA have completed the previously reported restructuring of the joint venture that is developing Pacific Park Brooklyn.
NEW YORK CITY—Forest City Realty Trust, Inc. reports today that the joint venture between the Cleveland-based firm and Madison International Realty has acquired a 49% interest in the DKLB BKLN multifamily project on DeKalb Avenue in Brooklyn.
A co-mingled fund managed by National Real Estate Advisors, LLC, co-developed the 365-unit apartment tower with Forest City. The National Real Estate Advisors’ fund’s 49% interest in the property was valued at approximately $93.5 million, including assumption of debt.
Prior to the transaction, Forest City had a 51% interest in the DKLB BKLN high-rise property that opened in 2009.
“Brooklyn continues to be one of the strongest rental apartment markets in the country, and DKLB BKLN has quickly become both a landmark in the Fort Greene neighborhood and a valuable and productive asset for our company,” says David J. LaRue, Forest City president and CEO. “All of that makes acquiring our partner’s interest a compelling opportunity and a low-risk capital allocation decision.”
In another deal announced today, Forest City Realty Trust and Greenland USA have completed the previously reported restructuring of the joint venture that is developing Pacific Park Brooklyn. The restructuring increases Greenland USA’s ownership interest from 70% to 95% and reduces Forest City’s ownership interest to 5%.
Greenland USA will assume primary responsibility for the remaining development work at Pacific Park, a new 22-acre mixed-use development in Brooklyn adjacent to the Barclays Center. The restructuring does not impact three projects previously developed and completed by the Greenland Forest City Partners joint venture: 38 Sixth Ave., 535 Carlton and 550 Vanderbilt.
“Pacific Park is an important development and we are committed to continuing to deliver the terrific mixed-use community that we have begun to build in the heart of Brooklyn,” says Hu Gang, president and CEO of Greenland USA. “We’re proud of the significant progress we’ve already made—particularly providing much needed affordable housing and local retail—and with the completion of this restructuring are ready to immediately build on this momentum.”
“The restructuring aligns with our strategy of maintaining an overall lower level of development activity, even as we remain fully committed to, and engaged in the joint venture,” says Forest City Realty’s LaRue. “The restructuring also keeps remaining entitled development on track to achieve our shared vision for Pacific Park. Forest City continues to believe strongly in the New York market—one the strongest and most resilient real estate markets in the country—and we continue to have a significant presence and portfolio there.”
New York City is Forest City’s largest core market by net operating income. In addition to DKLB BKLN, the regional portfolio includes the 11-building MetroTech Center office campus in Brooklyn, the New York Times Building and New York by Gehry in Manhattan, and the Tata Innovation Center at Cornell Tech on Roosevelt Island, among other properties.