Forest City Realty Trust

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Forest City Realty Trust, Inc.
Industry Real estate investment trust
Founded1920;104 years ago (1920)
FoundersCharles, Leonard, Max, and Fannye Ratner
DefunctDecember 7, 2018;5 years ago (2018-12-07)
FateAcquired by Brookfield Asset Management
Headquarters
Cleveland, Ohio
Key people
 James A. Ratner, Chairman
David J. LaRue, CEO
Robert G. O’Brien, CFO
Products Office buildings
Shopping centers
Apartments
RevenueDecrease2.svg $0.911 billion (2017)
Increase2.svg $0.215 billion (2017)
Total assets Decrease2.svg $8.063 billion (2017)
Total equity Increase2.svg $3.844 billion (2017)
Number of employees
1,548 (2017)
Website www.forestcity.net   OOjs UI icon edit-ltr-progressive.svg
Footnotes /references
[1]

Forest City Realty Trust, Inc., formerly Forest City Enterprises, was a real estate investment trust that invested in office buildings, shopping centers and apartments in Boston, Chicago, Dallas, Denver, Los Angeles, Philadelphia, and the greater metropolitan areas of New York City, San Francisco and Washington, D.C. The company was organized in Maryland with its headquarters in Cleveland, Ohio. As of December 31, 2017, the company owned 29 office buildings, 29 shopping centers, and 78 apartment complexes. [1] On December 7, 2018, the company was acquired by Brookfield Asset Management.

Contents

History

In 1920, Forest City was founded as a family-owned lumber and household hardware business by siblings Charles, Leonard, Max and Fannye Ratner, immigrants from Poland. [2] Beginning in the 1930s, the company invested in residential garages, apartments, retail strip centers. During World War II, the company manufactured and prefabricated governmental housing. [2]

In 1960, Forest City became a publicly-traded company. [2] In 1987, the company sold its retail lumber business to Handy Andy Home Improvement Center. [3]

In 2011, the company sold a 49% stake in a retail portfolio in New York for $172.3 million. [4] In 2013, the company acquired a 100% interest in a mall in Pittsburgh. [5] The company also sold a Sheraton hotel in Station Square in Pittsburgh for $61 million. [6] It also announced plans to redevelop Ballston Common Mall. [7] The company acquired a key parcel from Macy's for $13.4 million. [8]

In 2016, for tax purposes, the company converted into a real estate investment trust. [9] The company also sold its stake in the Brooklyn Nets and the Barclays Center to Mikhail Prokhorov, [10] sold its military housing division to Hunt Companies for $208.8 million, [11] sold Terminal Tower to K&D Group for $38.5 million, [12] and sold 7.7 acres and 8 buildings in Cleveland to an investor group for $3.5 million. [13]

In June, 2017 Forest City shareholders voted to eliminate the dual share structure that had enabled the founding Ratner family to control the company. [14] The City of New York also filed a lawsuit against the company in conjunction with the rent due pursuant to a ground lease. [15]

In August, 2017 the company sold 25 acres in Cleveland. [16] In October, 2017 the company sold its interests in 10 malls to Queensland Investment Corporation for $1.55 billion. [17]

On December 7, 2018, the company was acquired by Brookfield Asset Management. [18] [19]

Investments

Forest City developed The New York Times Building in New York City in 2008. NYTimesBldgByLuigiNovi2.jpg
Forest City developed The New York Times Building in New York City in 2008.

Notable projects that were owned by the company are:

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References

  1. 1 2 "Forest City Realty Trust, Inc. 2016 Form 10-K Annual Report". U.S. Securities and Exchange Commission .
  2. 1 2 3 Perez, Christine (June 1, 2007). "From Lumberer to Developer, Forest City's Roots Run Deep". National Real Estate Investor .
  3. ↑ "Handy Andy Purchase". Chicago Tribune . January 15, 1987.
  4. ↑ "Forest City Announces Joint Ventures with Madison International Realty for 15 New York City Area Retail Centers" (Press release). Forest City Enterprises. March 29, 2011 – via PR Newswire.
  5. ↑ "Forest City Acquires Partner's Share of Pittsburgh Regional Mall; Sells Its Interest in Adjacent Specialty Center to Partner" (Press release). Forest City Enterprises. April 18, 2013 – via PR Newswire.
  6. ↑ Gough, Paul J. (July 19, 2013). "Sheraton Station Square Hotel sold for $61M". Washington Business Journal .
  7. ↑ Sernovitz, Daniel J. (September 17, 2013). "Forest City details Ballston Common mall makeover". Washington Business Journal.
  8. ↑ Sernovitz, Daniel J. (September 12, 2013). "Forest City completes deal with Macy's for Ballston Common mall redevelopment". Washington Business Journal.
  9. ↑ "Forest City completes conversion to REIT status" (Press release). Forest City Enterprises. January 4, 2016 – via PR Newswire.
  10. ↑ Jarboe, Michelle (February 1, 2016). "Forest City no longer owns stake in Brooklyn Nets, Barclays Center". The Plain Dealer . Cleveland.
  11. ↑ "Forest City closes sale of military housing business to Hunt Companies" (Press release). Forest City Enterprises. February 22, 2016 – via PR Newswire.
  12. ↑ Jarboe, Michelle (September 15, 2016). "Terminal Tower sold to K&D Group in $38.5 million deal; apartments planned for 12 floors (photos)". The Plain Dealer. Cleveland.
  13. ↑ Jarboe, Michelle (December 21, 2016). "Forest City sells Flats properties to Cleveland-area investor group eyeing development (photos)". The Plain Dealer. Cleveland.
  14. ↑ Bullard, Stan (June 12, 2017). "Forest City shareholders OK changing stock structure" . Crain's Cleveland Business . Retrieved April 2, 2022.
  15. ↑ Rothstein, Matthew (June 1, 2017). "City Files Suit Against Forest City For Times Square Ground Lease" . Bisnow Philadelphia . Archived from the original on September 15, 2017. Retrieved April 2, 2022.
  16. ↑ Jarboe, Michelle (August 4, 2017). "Forest City sells 25 acres on Scranton Peninsula in Cleveland (photos)". The Plain Dealer. Cleveland: cleveland.com. Archived from the original on December 10, 2018.
  17. ↑ "Forest City and QIC execute definitive agreements for regional mall portfolio" (Press release). Forest City Enterprises. October 2, 2017. Archived from the original on May 8, 2021 – via PR Newswire.
  18. ↑ "Brookfield Completes Acquisition of Forest City Realty Trust" (Press release). Brookfield Asset Management. December 7, 2018. Archived from the original on May 14, 2021 – via Globe Newswire.
  19. ↑ Jarboe, Michelle (December 6, 2018). "Brookfield cuts jobs, including top executives, at Forest City as acquisition looms". The Plain Dealer. Cleveland: cleveland.com. Archived from the original on November 20, 2023.
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