Big moves aren’t endgame, developer says

One of the Tobacco Row buildings. (Photo by Michael Schwatz)

One of Forest City Enterprises’ Tobacco Row buildings. (Photo by Michael Schwatz)

Developer Forest City Enterprises is thinning its Richmond area portfolio, but it’s not cutting ties.

A deal announced Monday to sell half of its ownership stake in Short Pump Town Center marks the third time in nine months that the Cleveland-based developer has sought to unload some of its local holdings.

In September, it sold the White Oak Village shopping center in Eastern Henrico for $68 million.

Last month, the company put up for sale its Tobacco Row properties, a portfolio that includes five renovated apartment buildings with more than 700 units, a 137,000-square-foot office building and a row of 12 townhouses.

Forest City spokesman Jeff Linton called Richmond an “excellent market” and said the company is not moving away from the city.

He said Forest City has no immediate plans to sell its 570,000-square foot Richmond Office Park in Henrico. And it remains committed to the popular Short Pump mall.

“We intend to remain a long-term owner-manager at Short Pump Town Center,” Linton said. “It is one of our best mall assets.”

Linton said the sale of White Oak Village was part of a shift toward larger retail malls.

“White Oak is more of what we refer to as a specialty retail center,” Linton said. “It’s not really a mall.”

Tobacco Row was put on the market in an attempt to capitalize on a favorable apartment market, Linton said.

“We believe we can harvest significant value from Tobacco Row in a potential sale,” he said. “If we don’t get the price we anticipate, we are happy to continue to own and operate it.”

Andy Boyer, a CBRE broker handling the Tobacco Row sale, told BizSense last month that he expects the complex to bring in about $120 million. The buildings may be sold individually or as a single portfolio, and a CBRE flier listed Wednesday as the due date for offers on the properties.

Forest City posted a net loss of $19.4 million for the first quarter of 2013, compared with a 2012 first quarter profit of $22.8 million, according to the company’s earnings reports. The developer has eight properties under construction nationwide, seven of which are multifamily residential units.

One of the Tobacco Row buildings. (Photo by Michael Schwatz)

One of Forest City Enterprises’ Tobacco Row buildings. (Photo by Michael Schwatz)

Developer Forest City Enterprises is thinning its Richmond area portfolio, but it’s not cutting ties.

A deal announced Monday to sell half of its ownership stake in Short Pump Town Center marks the third time in nine months that the Cleveland-based developer has sought to unload some of its local holdings.

In September, it sold the White Oak Village shopping center in Eastern Henrico for $68 million.

Last month, the company put up for sale its Tobacco Row properties, a portfolio that includes five renovated apartment buildings with more than 700 units, a 137,000-square-foot office building and a row of 12 townhouses.

Forest City spokesman Jeff Linton called Richmond an “excellent market” and said the company is not moving away from the city.

He said Forest City has no immediate plans to sell its 570,000-square foot Richmond Office Park in Henrico. And it remains committed to the popular Short Pump mall.

“We intend to remain a long-term owner-manager at Short Pump Town Center,” Linton said. “It is one of our best mall assets.”

Linton said the sale of White Oak Village was part of a shift toward larger retail malls.

“White Oak is more of what we refer to as a specialty retail center,” Linton said. “It’s not really a mall.”

Tobacco Row was put on the market in an attempt to capitalize on a favorable apartment market, Linton said.

“We believe we can harvest significant value from Tobacco Row in a potential sale,” he said. “If we don’t get the price we anticipate, we are happy to continue to own and operate it.”

Andy Boyer, a CBRE broker handling the Tobacco Row sale, told BizSense last month that he expects the complex to bring in about $120 million. The buildings may be sold individually or as a single portfolio, and a CBRE flier listed Wednesday as the due date for offers on the properties.

Forest City posted a net loss of $19.4 million for the first quarter of 2013, compared with a 2012 first quarter profit of $22.8 million, according to the company’s earnings reports. The developer has eight properties under construction nationwide, seven of which are multifamily residential units.

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