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August 1, 2007
Forest City Expands Military Housing Program
Press Release, via Business Wire
Agrees to acquire 2,985 Navy housing units in the Northwest Region
Selected to manage more than 400 Air Force Academy homes in Colorado
Enters into exclusive negotiations for Phase II of Marine Corps project in Hawaii
Enters into exclusive negotiations for Phase II of Navy Midwest project
Forest City Enterprises, Inc. (NYSE:FCEA)(NYSE:FCEB) today announced that its Forest City Military Communities, LLC subsidiary is expanding its military housing program to 11,956 units under management as a result of additional 50-year public/private venture agreements with the U.S. military.
In the northwest, Forest City has entered into an agreement to acquire American Eagle Communities’ interest in 2,985 Navy housing units and ancillary facilities. The Navy’s Northwest Region encompasses multiple housing neighborhoods associated with three Naval Installations in the Puget Sound area of the state of Washington. Subject to Navy approval and customary closing conditions, Forest City will be responsible for demolition, renovation and new construction of homes, representing approximately $169 million in development costs, as well as property management.
In addition, Forest City, together with a partner, has closed on a transaction with the United States Air Force to design, develop and construct military family housing units at the Air Force Academy in Colorado Springs, Colorado. The Air Force Academy project represents a development cost of approximately $80 million, and includes demolition of 814 family housing units, renovation of 299 units, rehabilitation of two historically significant homes and construction of 34 new family homes – for an end-state count of 427 family homes under management at the Academy.
Ronald A. Ratner, president and chief executive officer of Forest City Residential Group, Inc., said, “In just three years, the military housing business has grown to more than 11,900 permanent units, becoming a very significant part of our residential portfolio. Our ability to manage large, complex projects and create a sense of place in multifamily developments is being put to good use in our work with the Navy, Marines and Air Force. We are honored to have the opportunity to create and manage modern housing and communities that enhance the quality of life for our nation’s service personnel and their families.”
Posted by lumi at August 1, 2007 8:07 AM