Forest City Realty Trust has executed a master purchase and sale agreement with Jonathan Rose Companies, which will acquire Forest City’s equity interest in a portfolio of 47 federally-assisted housing communities across nine states and the District of Columbia for $80 million. Forest City is set to receive $65 million in cash proceeds from the transaction.
Given the size and scope of the deal, both companies are expected to begin closing separately in the second quarter and finish in the fourth.
"Forty years ago, Forest City began the development of an extraordinary portfolio of affordable housing that they have maintained with care ever since," said Jonathan F. P. Rose, President of Jonathan Rose Companies, in a statement. "This is a perfect portfolio for the Jonathan Rose Companies to expand its national development and preservation of safe, stable, green, and affordable housing in which families and seniors can thrive."
"While our federally assisted housing business has created value and contributed to our results for many years, this transaction, together with the anticipated sale of our military housing business that we previously announced, will continue the process of simplifying our business model and focusing our multifamily portfolio around conventional rental apartment communities,” added David J. LaRue, Forest City president and CEO.
