RCA in the commercial property press:

Equity Sale to Help Forest City Pay Off Debt on NYC Retail Portfolio

The Real Deal Online reports: Real Capital Analytics’ Managing Director Dan Fasulo recent told The Real Deal that, “At certain points in the cycle bringing in more equity is more attractive than debt for a lot of reasons…They make a lot of money just off business activities not related to owning."

Mr Fasulo was responding to Madison International Realty’s recent announcement that, for $172 million in cash, it would take a 49% stake in a 15–property portfolio of New York City retail and entertainment assets. Current-owners Forest City Enterprises will retain a 51% stake, which entitles them to continue managing and controlling leasing of the properties. The holdings include a chunk of retail space on Manhattan’s 42nd Street near Times Square as well as the recently-built Atlantic Center mall in Brooklyn. A 49% stake for $172 million values the entire portfolio at $851.5 million, including nearly $500 million in debt, for a cap rate of 6.9%.

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Posted by: Nina Turner

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