CLEVELAND, Feb. 1, 2011 /PRNewswire via COMTEX/ --
Forest City Enterprises, Inc., (NYSE: FCEA and FCEB) today announced the closing of the sale of approximately 16 acres of land, together with air rights, to Rock Ohio Caesars Cleveland LLC, for development of a casino in downtown Cleveland. The land is adjacent to Forest City's Tower City Center mixed-use complex. The total sale price was $85 million, of which $11 million was paid in cash at closing, with the balance payable in installments in late 2011 and 2012.
"This sale is a milestone in the process of bringing a first-class casino to Tower City, and the start of an exciting new future for downtown Cleveland entertainment," said David J. LaRue, Forest City executive vice president and chief operating officer. "The sale is also a demonstration of the value embedded in Forest City's portfolio of real estate. We anticipate that a successful casino will stimulate further downtown revitalization and economic development, and will also have a positive impact on the long-term value of our Tower City assets."
Forest City owns a total of more than 2 million square feet of commercial space at Tower City Center. The complex includes the 365,000-square-foot Avenue at Tower City retail center, the 206-room Ritz-Carlton Cleveland hotel, five office buildings: Skylight Office Tower, Post Office Plaza (formerly the M.K. Ferguson Building), 250 Huron, the Higbee Building, and the landmark Terminal Tower, the site of Forest City's corporate headquarters, as well as access to parking for approximately 3,500 automobiles.
About Forest City
Forest City Enterprises, Inc. is an NYSE-listed national real estate company with $11.8 billion in total assets. The Company is principally engaged in the ownership, development, management and acquisition of commercial and residential real estate and land throughout the United States. For more information, visit http://www.forestcity.net/.
About Rock Ohio Caesars LLC
Rock Ohio Caesars LLC was formed in December 2010 by Rock Gaming and Caesars Entertainment to develop and operate casinos in the downtowns of both Cleveland and Cincinnati. The joint venture, which is majority owned by Rock Gaming, has entered into long-term management agreements with subsidiaries of Caesars for management and operation of each of the venture's facilities.
Safe Harbor Language
Statements made in this news release that state Forest City Enterprises' or Forest City management's intentions, hopes, beliefs, expectations or predictions of the future are forward-looking statements. The Company's actual results could differ materially from those expressed or implied in such forward-looking statements due to various risks, uncertainties and other factors. Risks and factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, the impact of current lending and capital market conditions on its liquidity, ability to finance or refinance projects and repay its debt, the impact of the current economic environment on its ownership, development and management of its real estate portfolio, general real estate investment and development risks, vacancies in its properties, further downturns in the housing market, competition, illiquidity of real estate investments, bankruptcy or defaults of tenants, anchor store consolidations or closings, international activities, the impact of terrorist acts, risks associated with an investment in a professional sports team, its substantial debt leverage and the ability to obtain and service debt, the impact of restrictions imposed by its credit facility and senior debt, exposure to hedging agreements, the level and volatility of interest rates, the continued availability of tax-exempt government financing, the impact of credit rating downgrades, effects of uninsured or underinsured losses, environmental liabilities, conflicts of interest, risks associated with the sale of tax credits, risks associated with developing and managing properties in partnership with others, the ability to maintain effective internal controls, compliance with governmental regulations, increased legislative and regulatory scrutiny of the financial services industry, volatility in the market price of its publicly traded securities, litigation risks, as well as other risks listed from time to time in the Company's SEC filings, including but not limited to, the Company's annual and quarterly reports.
SOURCE Forest City Enterprises, Inc.