Forest City Secures $167M for Three Sites

CLEVELAND-Forest City Enterprises Inc. has gained financing approvals for one retail and two multifamily properties. The transactions, for $167 million, included expansion construction financing for a retail center in Temecula, CA and an apartment community in San Francisco, as well as a mixed-use development in Massachusetts.

The retail property is the 1.1-million-square-foot Promenade. The $75-million loan will go for a 127,000-square-foot, main-street style expansion, says a company spokesman. The New York State Teachers’ Retirement System, which has the financing of the center, is providing the new loan as well, the spokesman says, showing that relationships have helped keep deals going during this downturn.

“It’s definitely a challenging environment out there, loan originators are making 10 to 15 calls for these deals instead of two or three,” he tells GlobeSt.com. “The bottom line is that these deals can still get done. The terms may not be as favorable as they once were, and the loan-to-value may not be as good, but the right projects can still get done.” He says he cannot reveal the terms of the loans.

The company closed a $67.5-million construction financing for the Presidio, a 161-unit apartment community that is part of the historic former military base at the foot of the Golden Gate Bridge in San Francisco. Wachovia, RBS Citizens NA and the National Electrical Benefit Fund participated in the transaction. Click here for another recent story on this project.

Also, the company completed a $24.9 million refinancing of 91 Sidney, a 135-unit apartment community in Cambridge, MA. The building is part of the large University at MIT campus, the site of the former Simplex Wire and Cable Co. Biotechnology and other companies, as well as more than 660 apartments, now occupy the property. KeyBank and Fannie Mae participated in the 91 Sidney loan, the spokesman says.