A story yesterday in National Real Estate Investor, Forest City Would Attract Plenty of Bidders in a Potential Sale, notes that yesterday's announced sale of Forest City Realty Trust's New York retail portfolio (including Atlantic Terminal and Atlantic Center malls) was long in the works, but that the rest of the company could be in play, thanks to the company's 9/11/17 announcement "to explore a broad range of alternatives to enhance stockholder value."
Given its location in major urban centers, real estate analyst Paul Adornato tells NERI, Forest City “would be a very attractive target.” It also has unused development rights. But the "additional income potential" of projects in process, including Pacific Park Brooklyn, should be tempered by a recognition that that project at least has been stalled and subject to a glut of market rate units.
Beyond selling particular assets, an interviewee suggested that various large entities, such as Blackstone or Brookfield, might be interested in the company as a whole, or a split.
The issue should come down to numbers, but maybe not completely. Public companies are supposed to chose the deal that works for their shareholders.
One question is whether, for familial or sentimental reasons, the extended Ratner family, which no longer controls the board but has significant sway, has reason to resist the diminishment or end of Forest City.
Given its location in major urban centers, real estate analyst Paul Adornato tells NERI, Forest City “would be a very attractive target.” It also has unused development rights. But the "additional income potential" of projects in process, including Pacific Park Brooklyn, should be tempered by a recognition that that project at least has been stalled and subject to a glut of market rate units.
Beyond selling particular assets, an interviewee suggested that various large entities, such as Blackstone or Brookfield, might be interested in the company as a whole, or a split.
The issue should come down to numbers, but maybe not completely. Public companies are supposed to chose the deal that works for their shareholders.
One question is whether, for familial or sentimental reasons, the extended Ratner family, which no longer controls the board but has significant sway, has reason to resist the diminishment or end of Forest City.
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