July 27, 2009
Forest City in the News
FOREST CITY FINANCIAL
While Atlantic Yards developer Forest City Enterprises has claimed that litigation has been holding back construction on the megaproject in Prospect Heights, here's more evidence that delays are due to serious cash-flow problems:
"Proactively managing our debt and working closely with our lenders are key to preserving and enhancing liquidity, which continues to be our highest priority," said Charles A. Ratner, Forest City president and chief executive officer. "These transactions - as well as others previously announced - demonstrate the strength of our lending relationships, the skill of our finance teams, and our ability to continue to effectively manage our non-recourse, property-level debt."
The six new financings, which total approximately $70 million, include the following:
- A $27.2 million, 35-year HUD refinancing of Easthaven at the Village, a 360-unit apartment community in Beachwood, Ohio. The refinancing closed after the end of the Company's April 30, 2009, first quarter.
- A $23.3 million, 10-year refinancing, through Fannie Mae, of St. Mary's Villa, a 360-unit, federally assisted housing complex in Newark, New Jersey.
- Three separate transactions, totaling $15.9 million, through Freddie Mac, for Cleveland-area apartment communities: Parmatown Towers and Gardens, Independence Place I and Big Creek. Maturities on the refinancings range from seven to ten years.
- A three-year, $3.4 million financing for the fourth phase of development of Cobblestone Court Apartments, a 400-unit apartment community in Painesville, Ohio. This transaction closed after the end of the Company's April 30, 2009, first quarter.
The eight extensions of existing financings, which total approximately $255 million, include the following:
- A 17-month extension of a $99.2 million construction loan for the Company's Orchard Town Center retail center in Westminster, Colorado, near Denver. An additional one-year extension is also available.
- A one-year extension of $62.6 million in financing for 45/75 Sidney Street, a pair of connected office buildings in the Company's University Park at MIT project in Cambridge, Massachusetts. This extension closed after the end of the Company's April 30, 2009, first quarter.
- A two-year extension on a $25.3 million land loan for the Company's Central Station mixed-use development in downtown Chicago.
- Two-year extensions on land loans of $15.3 million and $21.1 million for adjacent, planned-community projects in Manatee County, Florida, south of Tampa. Both extensions closed after the end of the Company's April 30, 2009, first quarter.
- An automatic, one-year extension on $18.0 million in securitized financing for the Company's Charleston Marriott, a 352-room hotel in downtown Charleston, West Virginia.
- A two-year extension on an $8.1 million land loan for the Tangerine Crossing planned community development in Tucson, Arizona.
- A two-year extension on a $5.3 million land loan for the Company's Legacy Lakes planned community in Aberdeen, North Carolina.
Denver Business Journal, Forest City gets construction-loan extension for Orchard Town Center
The Orchard Town Center outdoor shopping center in Westminster is among the Forest City Enterprises Inc. projects involved in $325 million in new financings and extensions of existing financings obtained by the developer, Forest City said Friday.
Orchard Town Center received a 17-month extension of a $99.2 million construction loan for the project, plus the option of another one-year extension.
The extension is the largest dollar amount of a total of 14 financings that publicly traded Forest City (NYSE: FCEA/FECB) has done since the beginning of its fiscal year, Feb. 1.
Cleveland Plain Dealer, Forest City closes $325 million in financings, loan extensions
The real estate company, based in Cleveland, has been trying to build up cash, pay off debt and extend existing loans as they come due. Forest City said Friday that it has closed six financing or refinancing deals, totaling nearly $70 million, since the start of its fiscal year
IT'S NOT EASY BEING GREEN
KHON.com, Wind Power Tested for Military Housing
While Forest City Enterprises is blowing hot air in Brooklyn, the company is running tests to determine the viability of wind power generation at military housing developments in Hawaii:
"We hope to understand how the wind operates here off of Pearl Harbor and eventually try to generate power using wind energy,” said John Wallenstrom, senior vice president of military housing for Forest City Military Communities Hawaii.
A 164-foot tall meteorological tower or “MET” is measuring wind speed to see how well smaller wind turbines could work here. The same test will get underway soon at other housing Forest City manages on the Marine Corps base in Kaneohe.
Posted by lumi at July 27, 2009 5:21 AM