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July 31, 2007
Forest City Acquires Interest in 12.7-Acre Site for Commercial Development in Las Vegas
Press release via dBusinessNews Cleveland:
CLEVELAND -- Forest City Enterprises, Inc. (NYSE:FCEA)(NYSE:FCEB) today announced that it has acquired a 60 percent interest in a 12.7-acre site in downtown Las Vegas.
Forest City acquired its 60 percent interest in the site from entrepreneurial real estate developer Livework LLC, which will hold the remaining 40 percent interest in the property. The total cost of the site is approximately $136 million. KeyBank National Association was the lead lender on the transaction.
Forest City and Livework intend to work with city officials to develop a major regional transportation terminal, city office buildings and other commercial buildings on the five-city-block site, strategically located in the downtown business and city government district, which includes City Hall. The site is also located near hundreds of new condominiums currently under construction, and the 12-million-square-foot World Market Center, a mixed-use home and lifestyle design campus that consists of more than 500 furniture showrooms, and is being further expanded to include office space, a convention center and residences.
Charles A. Ratner, president and chief executive officer of Forest City Enterprises, said, “Forest City is looking forward to working very closely with Livework and the Las Vegas community to develop this site in one of America’s strongest and fastest-growing real estate markets. We have been developing major land projects and retail properties in Las Vegas for more than 20 years. We believe in this market and our new partners, and look forward to creating significant value for our shareholders.”
NoLandGrab: Though this sounds more like a traditional mixed-use Forest City project that just happens to be in the gambling capital of the world, remember that the company has been desperately trying to break into the casino business for years:
- Just last year they lost a bid to develop a giant mixed-use slot-machine parlor in Pittsburgh.
- In the 2006 election in Ohio, Forest City was hoping voters would approve a gambling referendum, which would have allowed the development company to "open a slots parlor with up to 3,500 machines at its Tower City property, on the east bank of the Cuyahoga River." The referendum did NOT pass.
- In November 2005, Forest City execs were spotted hob-nobbing with Steve Wynn in Pennsylvania.
- Here in NY, according to lobbying reports, Forest City has devoted time and money to promoting casino gambling opportunities.
Posted by lumi at July 31, 2007 9:12 AM