Forest City Selling 55% Stake in Barclay’s Center
- Oct 22, 2014
Forest City Enterprises, Inc. appears ready to sell its majority stake in the Barclays Center arena, the crown jewel in its $4.9 billion Atlantic Yards project in downtown Brooklyn.
The asking price for the 55 percent stake was not available.
The development company owns the controlling interest in the $1 billion, two-year-old arena, the home of the Brooklyn Nets basketball team and by the 2015-16 season, the New York Islanders hockey team. Daniel Kaplan of SportsBusiness Journal reported investment bank Evercore Partners is ready to start accepting bids for the Barclays Center stake either later this week or early next week. A spokesperson for Evercore declined to comment when reached by Commercial Property Executive.
The only confirmation that a sale is in the works came in a two-sentence statement from Barry Baum, an arena spokesman, who said: “Our goal is to identify a strategic partner as we continue to capitalize on the great performance of Barclays Center and the promise of Nassau Coliseum. The current management team will continue in its existing role.”
Forest City Ratner Cos., the New York affiliate of Cleveland-based Forest City Enterprises, is redeveloping the Nassau Coliseum in Uniondale, N.Y, into a sports and entertainment complex for approximately $229 million. Work will begin after the Islanders’ current season ends in 2015.
In the spring, Forest City Enterprises announced it was selling its 20 percent share in the Nets basketball team but has not had any takers. Russian billionaire Mikhail Prokhorov owns the remaining 80 percent share of the team as well as 45 percent of the arena. Forest City Enterprises sold shares in both the team and the downtown Brooklyn arena to Prokhorov in 2009.
The firm recently sold 70 percent of the Atlantic Yards project, recently renamed Pacific Park Brooklyn, to Greenland Group. Co., a Shanghai-based investment company, for $200 million. Announced a year ago, the joint venture deal closed in July. Forest City Ratner continues to oversee the $1.3 billion, 22-acre project, which calls for 6,400 residential units, including 2,250 affordable apartments. It will also feature about 247,000 square feet of retail and 336,000 square feet of office development.
The joint venture deal with Greenland USA, a subsidiary of Greenland Group, did not include any shares in the Barclay Center or the first residential tower under construction – 461 Dean St., formerly known as B2. The JV is operating as Greenland Forest City.