Forest City Enterprises has acquired the interest of its
equity partner, the Arizona State Retirement System, in B2 BKLYN, a 363-unit
high-rise modular apartment being developed at Pacific
Park (formerly Atlantic Yards) in Brooklyn . Work recently ceased on the project after the contractor,
Skanska USA ,
shut down construction at the site and closed the factory being used to build
the modular units. The development is now subject to litigation between Forest City
and Skanska.
The buyout of ASRS’s equity interest to date, for which Forest City
paid $40.5 million, removes B2 BKLYN from the $400
million residential development fund between ASRS and Forest City .
The company also assumed ASRS’s share of the debt on B2.
“We felt it was prudent to make this incremental investment
now, rather than cloud the future of the fund as a result of litigation related
to a single property,” says David LaRue, Forest City
president and CEO. “In addition, because this investment makes Forest City
the 100 percent equity owner of B2, we will have greater flexibility as we
drive to restart work at the building site and the modular factory, and to get
the hundreds of affected men and women back to work.”
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