Forest City Completes Trio of Financing Deals Totaling $167M
- Nov 10, 2008
Despite the sagging economy and possible recession, Forest City Enterprises Inc. recently completed three financing transactions totaling more than $167 million. Still, even the $10.9 billion Forest City has learned that the nagging credit crisis is making it ever more difficult to ferret out lenders with money to lend. “Our financing origination people are making 10 calls for every two they used to make,” a Forest City spokesperson told CPN. “It isn’t that lenders are making value judgments about our projects; they just don’t have money to lend.” Nevertheless, on Nov. 7, Forest City closed on a $75 million construction loan for a 127,000-square-foot, main-street style expansion of the 1.1 million-square-foot Promenade in Temecula (pictured) in Southern California. The New York State Teacher’s Retirement System, which holds the permanent financing on the existing property, provided the expansion financing, which will convert to a permanent loan when the project is completed. The second transaction closed on Oct. 31. Wachovia, RBS Citizens, N.A. and the National Electrical Benefit Fund joined forces to provide $67.5 million in construction financing for Forest City’s Presidio. The 161-unit adaptive re-use apartment community is part of the historic former military base at the foot of the Golden Gate Bridge in San Francisco. The third transaction also closed on Oct. 31. KeyBank and Fannie Mae participated in the $24.9 million refinancing of a 135-unit apartment community in University Park at MIT, an urban, mixed-use development.