Forest City Realty Trust

Forest City Realty Trust
Forest City Enterprises · Public domain · source
Name	Forest City Realty Trust
Type	Public company (until acquisition)
Founded	1920s (as Forest City Enterprises)
Fate	Acquired by Brookfield Asset Management and Brookfield Properties (2018–2019)
Headquarters	Cleveland, Ohio; also New York City, New York
Industry	Real estate investment trust
Products	Residential, office, retail, mixed-use, industrial
Key people	Bruce Ratner, Ted Serbinski, David LaRue

Forest City Realty Trust was a publicly traded real estate investment trust headquartered in Cleveland, Ohio and New York City, known for large-scale urban development and mixed-use projects across the United States and Canada. The company evolved from Forest City Enterprises, engaging in residential, office, retail, and mixed-use properties and participating in high-profile urban revitalization initiatives. Forest City was noted for projects that intersected with municipal planning, sports franchises, transportation agencies, and institutional investors.

History

Forest City Realty Trust traced its corporate roots to Forest City Enterprises, a family-founded developer active during the 20th century alongside firms such as The Rockefeller Group, Tishman Speyer, Brookfield Asset Management, Vornado Realty Trust, and Simon Property Group. Throughout the late 20th and early 21st centuries the company interacted with municipal entities like City of Cleveland, New York City, San Francisco, and Los Angeles on redevelopment plans comparable to initiatives by The Related Companies and Hines Interests Limited Partnership. Leadership included executives who had professional ties to organizations such as Macy's, Inc., General Electric, Wells Fargo, and investment banks like Goldman Sachs and Morgan Stanley. The trust structure followed precedents set by REIT pioneers including Equity Residential and AvalonBay Communities. Forest City engaged with pension funds and institutional investors like CalPERS and Canada Pension Plan Investment Board on financing deals and joint ventures similar to partnerships seen with Blackstone Group and KKR.

Business operations and properties

Forest City operated across asset classes including multifamily residential, office towers, retail centers, and mixed-use complexes, competing with firms such as Related Companies, Prologis, Boston Properties, Equity Office Properties, and Simon Property Group. Its portfolio included urban properties in markets like New York City, Cleveland, Chicago, Los Angeles, San Diego, San Francisco, Denver, Atlanta, and Canadian markets akin to those served by Oxford Properties and Ivanhoé Cambridge. The company executed leasing and property management functions coordinated with brokers and lenders such as CBRE, JLL, Cushman & Wakefield, J.P. Morgan Chase, and Bank of America. Forest City pursued transit-oriented development strategies comparable to projects by MTR Corporation and Metropolitan Transportation Authority. Its capital structure employed equity offerings, debt facilities, and joint venture vehicles with partners including AIG, Deutsche Bank, and Goldman Sachs.

Financial performance and corporate governance

As a publicly traded entity listed on stock exchanges, Forest City’s financial disclosures reflected revenue from leases, property sales, and development fees, in line with standards endorsed by institutions like Securities and Exchange Commission, Financial Accounting Standards Board, and analysts at Moody's Investors Service and Standard & Poor's. The company’s corporate governance featured a board and committees interacting with proxy advisory firms such as Institutional Shareholder Services and Glass Lewis. Forest City contended with market cycles similar to those that affected REIT peers during the 2007–2008 financial crisis and the subsequent recovery driven by monetary policy from Federal Reserve decisions. Its capital-raising included offerings overseen by underwriters from Goldman Sachs, Morgan Stanley, and Citigroup and attracted institutional shareholders including Vanguard Group and BlackRock.

Major projects and developments

Forest City developed notable projects that involved partnerships with cultural institutions, sports franchises, and transportation agencies, resembling collaborations undertaken by The Related Companies and Madison Marquette. Signature undertakings included large mixed-use developments tied to professional sports arenas comparable to projects associated with Yankee Stadium redevelopment and Barclays Center-scale urban infill. The company worked with municipal planning bodies such as New York City Department of City Planning, transit agencies like Metropolitan Transportation Authority and Port Authority of New York and New Jersey, and academic partners similar to engagements with Columbia University and Cleveland Clinic. Developments often required coordination with preservation organizations such as National Trust for Historic Preservation and cultural stakeholders including Brooklyn Academy of Music and regional arts commissions comparable to those affiliated with Kennedy Center initiatives.

Legal issues and controversies

Forest City was involved in disputes and regulatory scrutiny tied to land use, environmental review, labor relations, and community impact—issues encountered by peers like Glenwood Management and Caruso Affiliated. Legal matters brought it into litigation arenas such as state courts, federal courts including United States District Court for the Southern District of New York, and administrative proceedings with agencies like Environmental Protection Agency and municipal zoning boards similar to New York City Landmarks Preservation Commission hearings. Controversies included debates over eminent domain, affordable housing obligations mirroring controversies around projects like Atlantic Yards and engagements with unions represented by Service Employees International Union and Building and Construction Trades Department, AFL–CIO.

Acquisition by Brookfield Asset Management and Brookfield Properties

In transactions completed in stages during 2018–2019, Forest City’s remaining assets and operations were acquired by global investors including Brookfield Asset Management and its operating subsidiary Brookfield Properties, in a process akin to consolidation moves by Blackstone Group and Greystar Real Estate Partners. The acquisition followed negotiations with institutional stakeholders such as Canada Pension Plan Investment Board and underwriter/advisor firms like Lazard and Evercore. Post-acquisition integration involved coordination with property management platforms such as CBRE and asset managers comparable to Grosvenor Group, with regulatory filings made to agencies like the Securities and Exchange Commission and consultations with antitrust authorities analogous to filings with the Federal Trade Commission. The deal concluded Forest City’s independent public-company tenure, folding its portfolio into Brookfield’s global real estate platform alongside assets from affiliates such as Brookfield Renewable Partners.

Category:Defunct companies based in Cleveland Category:Real estate investment trusts Category:2019 mergers and acquisitions