Forest City Ratner’s Cleveland-based parent company Forest City Enterprises completed more than $300 million in property financings in the quarter ending Jan. 31, 2012, including two worth a combined $163 million in New York City, it announced today.
The company closed a 10-year, $87 million loan for Queens Place, a 455,000-square-foot, five-level retail center on Queens Boulevard. It also purchased the existing $75 million loan at Nine Metrotech, a 317,000-square-foot office building in the MetroTech Center office campus in downtown Brooklyn, and then closed a new 10-year, $63 million loan for the same property.
“These completed loans illustrate two important opportunities in the current lending environment that benefit Forest City,” said David LaRue, president and CEO of Forest City Enterprises. “First, we’re able to lock-in attractive, long-term rates that reduce interest expense and thereby improve cash flow at the property level. Second, we are able to selectively pay down loans in exchange for even more favorable rates, giving us an attractive return on the incremental capital invested and advancing our strategy of improving our balance sheet and overall debt metrics.” — Katherine Clarke