Forest City Realty Trust Inc. is continuing to reduce its exposure to the Brooklyn, N.Y., market with the sale of its apartment building in the Pacific Park Brooklyn mixed-use development. The 363-unit, 461 Dean Street apartment community is being sold to an international real estate manager for $156 million, reflecting a cap rate of approximately 4.5 percent on estimated 2018 net operating income. The sale is expected to generate net proceeds to Forest City of approximately $150 million. "We're pleased with this transaction, which achieved attractive pricing for this recently stabilized asset, and enables the company to generate significant liquidity to further our deleveraging efforts and other strategic uses," Forest City CEO, David J. LaRue said in a statement. "The economics of the sale also reflect the continued health of the Brooklyn multifamily rental market, and the continued value-creation opportunity in the market." The asset was fully owned by Forest City and was not part of the joint venture with Greenland USA that is continuing the development of the Pacific Park Brooklyn mixed-use project, a portion of which Forest City sold earlier this year. The property, which began phased opening in the third quarter of 2016, contains 50 percent affordable units. It was constructed using modular building technology and is among the tallest modular buildings in the world. This is yet another divestiture, on the heals of its sale of Antelope Valley Mall in Palmdale, CA. More sales are expected to come this year.
