Madison International pays $1 billion for Forest City retail portfolio stake
Publish Date: September 22, 2017
Forest City Realty Trust has agreed to sell its 51 percent–stake in 12 shopping centers to Madison International Realty, its joint-venture partner in the portfolio, for $1 billion. The 2.1 million-square-foot portfolio is spread through New York City and northern New Jersey. The sale is the result of Forest City’s announcement in August 2016 that it intends to “explore strategic alternatives” for its mall and specialty retail properties and focus on other commercial, residential and mixed-use development instead. Madison has held a 49 percent–stake in the portfolio since forging the partnership with Forest City in 2011.
"Today's announcement is an important step in the ongoing execution of our strategic plan and is another example of delivering on our commitment to create value," said David J. LaRue, Forest City president and CEO, and a past chairman of ICSC, in s prepared statement. "Madison International has been a great partner for the past six-plus years in these high-quality assets, and I salute the teams on both sides for bringing this large and complex transaction to fruition."
The centers are: Shops at Gun Hill Road (Waring), Shops at Gun Hill Road (Ely) and Castle Center in the Bronx; Harlem Center in Manhattan; Shops at Northern Boulevard and Queens Place in Queens; The Heights, Atlantic Terminal Mall and Atlantic Center in Brooklyn; Forest Avenue and Shops at Richmond Avenue in Staten Island; and Columbia Park Center in North Bergen, N.J.
The deal is expected to close this quarter, Forest City said.