CAMBRIDGE, MA—Forest City Enterprises, Inc. has announced that it has agreed to acquire the remaining 49% interest in the University Park at MIT life science complex here.

The Cleveland, OH-based firm entered into a share purchase and redemption agreement with Health Care REIT, Inc. The redemption price is $573.5 million, less Health Care REIT's 49% of the outstanding debt on the properties. At closing, which is expected to occur no later than Sept. 30, the net redemption price, net of debt and other closing adjustments, is anticipated to be approximately $400 million, Forest City reports. The two companies entered into a 51%-49% equity joint venture for the properties in early 2010. Toledo, OH-based Health Care REIT reports that it invested $327 million, including assumed debt, for its 49% interest in the property at the time.

University Park, a 27-acre, mixed-use campus developed by Forest City immediately adjacent to the Massachusetts Institute of Technology in Cambridge, includes 10 life-science office buildings totaling more than 1.7 million square feet, as well as 530 apartment units in four multifamily properties. Park amenities include a landscaped commons, a 210-room hotel, a grocery store, restaurants and neighborhood retail. MIT is the ground lessor for the entire University Park project.

The seven buildings included in the transaction are: 26 Landsdowne St., 64 Sidney St., 35 Landsdowne St., 40 Landsdowne St., 45/75 Sidney St., 65/80 Landsdowne St., and 88 Sidney St.

"Acquiring full equity ownership of these assets not only gives us greater control and flexibility, but also enhances our ability to create shareholder value,” states David J. LaRue, Forest City president and CEO. “The transaction aligns with our strategy of concentrating our investments in high-quality assets in key urban markets, reduces the number of operating assets we own through joint ventures, and both strengthens and simplifies our portfolio."

“This was a terrific investment for HCN, achieving an unlevered internal rate of return of approximately 15%. Forest City has been an excellent partner, and we appreciate their role in our successful partnership over the last five years,” states Tom DeRosa, CEO of HCN in a press announcement. “The proceeds from this sale will be reinvested accretively in our core business; owning, developing and managing the highest quality seniors housing, post-acute and outpatient medical real estate in the US, UK and Canada."

Forest City reports that it has paid a “significant, non-refundable cash deposit,” which would be forfeited in the event it fails to complete the acquisition, other than due to the failure of certain closing conditions to be met.