Subsidiaries of Forest City will retain 51% of the sevenbuildings and serve as asset and property manager for the JV. Sixbuildings will be involve din the first-stage closing worth $610million with the $58-million seventh building close coming in Q2 of2010. The buildings are part of the larger University Park complexand are currently 100% leased.

|

Forest City tells Globest.com that the main driver was to createliquidity, which has been part of its strategy outlined in 2008.However, market conditions were not amenable for this untilrecently. Charles A. Ratner, president and CEO of Forest City, saysin a statement, "It also positions us with a strong capital partnerwho can help us grow our life science business."

|

The University Park complex is a sprawling 27-acre, mixed-usecampus adjacent to the Massachusetts Institute of Technology campushere. The campus covers 2.3 million square feet, which is comprisedof, including the life science buildings, a 210-room hotel, 674residential units, a grocery store, restaurants and retail.Although seven buildings are involved in the JV, a total of 10 arepart of the campus.

|

The secured buildings are Jackson Building at 26 Landsdownewhich totals, 99,000 square feet; 35 Landsdowne at 202,000 squarefeet; 40 Landsdowne at 215,000 square feet; the 122,000-square-foot65/80 Landsdowne; the 145,000-square-foot 88 Sidney St.; and theMIT Millennium Building, 45/75 Sidney St. which comes to 277,000square feet. The seventh building is the Richards Building, 64Sidney St., which is 126,000 square feet.

|

Since demand for space in this area is traditionally high,Health Care REIT believes the assets in question will create "aboveaverage NOI growth," says Health Care REIT's CEO George L. Chapman.UBS Investment Bank and Eastdil Secured LLC were financial advisorsand Goulston & Storrs were legal advisor to Forest City forthis transaction.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.