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March 29, 2010
New York real estate firms set up REITs to raise cash
But badly burned banks are hesitant to make big loans
Investment News
by Theresa Agovino
Smart financing strategy or desperation move? Forest City, which recently missed a mortgage payment on one of its Metrotech buildings, looks to the Real Estate Investment Trust model to raise money.
Joining Mr. Swig in an effort to tap the stock market for cash is Forest City Ratner Cos., which hired Bank of America Corp. and Barclays PLC to explore underwriting a REIT of its retail properties. Meanwhile, American Realty Capital New York Recovery REIT Inc. is trying to raise up to $1.5 billion to purchase distressed Manhattan office properties.
...What Forest City hopes to offer investors with its proposed REIT isn't office buildings but retail properties.
Forest City didn't return calls seeking comment.
NoLandGrab: This is the second time in as many weeks that Forest City has been mentioned in an article (and in a similar context) alongside a seriously struggling developer. Is it just smoke, or might there be a fire?
Posted by eric at March 29, 2010 11:23 AM