NEW YORK CITY-Forest City Enterprises has recapped two of its New York City properties, significantly reducing the overall debt in both. The financing was completed for the Frank Gehry-designed 8 Spruce St. in Manhattan and DKLB BKLN, at 80 DeKalb Ave. in the Fort Greene section of Brooklyn.

At 8 Spruce St., Forest City and National Real Estate Advisors--representing the National Electric Benefit Fund, an equity investor in both properties--reduced the overall debt from $715 million to $539 million. The maturity of the credit facility was also extended through July 1, 2016. Of the 903 units in the high-rise, more than 270 had been leased as of the end of June, according to a news release from Forest City, which did not return a call from GlobeSt.com seeking comment.

However, in a prepared statement, Forest City president and CEO David LaRue referenced the challenges of moving forward with development projects during a time when forward momentum was not the norm. “This creative and very positive series of transactions demonstrates the tremendous value created in the development of these two properties by our New York team during some of the toughest market conditions in memory,” LaRue said. “It allows additional time for economic conditions and rents to further improve before refinancing is necessary. I congratulate NREA, our lenders and our New York office, which was led by Andy Silberfein and Matt Messinger in structuring and negotiating this series of transactions.”

The 365 units at DKLB BKLN are over 99% occupied. The debt on that property has been reduced from $147 million to $104 million. This was due in part to the conversion of the NEBF’s $30 million in mezzanine debt to a 49% equity stake.