Forest City Shopping Out Equity Stakes To Recapitalize Pacific Park Expansion
Forest City Realty Trust’s first big move as a REIT will be shopping out equity stakes in its massive Pacific Park development to recapitalize the project.
Forest City CEO David LaRue said on an earnings call Friday the REIT has hired CBRE to look for potential investors, The Real Deal reports. Forest City completed its long-awaited conversion to a REIT last January, and Congress has since banned new REIT spinoffs.
David said on the same call that he sees strong demand for residential projects in Brooklyn, despite the anticipated arrival of roughly 12,000 units into the market over the next year or so.
Once those units deliver, he says he expects supply to drop off again, partly due to the lapse of 421-a. Two of the 15 buildings being marketed at Pacific Park qualified for the tax break before it ended last January.
David says strong job growth, especially in the tech sector, will also help drive residential demand in Brooklyn in the years ahead, making projects like Pacific Park a solid bet. [TRD]
