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Real Deal: Forest City will sell NYC retail portfolio to Madison, which bought 49% in 2011

The Real Deal this morning published Madison International in talks to buy Forest City’s stake in NYC retail portfolio, based on an unnamed source. That means the fund manager, which in 2011 bought a 49% stake in the malls--like Atlantic Center and Atlantic Terminal--would own the entire portfolio outright.

Last August, Forest City indicated it could put such retail buildings on sale.

According to a 2011 New York Times interview with Madison International's Ronald Dickerman, "They came to us, I think, in September 2010 to fund their go-forward investments. You may know that the Atlantic Yards development is something like $4 billion."

The malls were fully occupied and leased, he said. "We invest in core Class A assets where the building itself is relatively stable and the deal is not distressed. What’s distressed about the transaction is the fatigue of the underlying investor."

So Forest City may be even more fatigued by now--as well as focusing its attention on mixed-use projects.

One lingering question: are they still planning--or retaining the rights to--an overbuild over Atlantic Center?

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