The sale of the Liberty Center complex in Pittsburgh, PA by Forest City (NYSE:FCE-A) (NYSE:FCE-B) and its 50% partner, Jos. L. Muscarelle, which includes a convention center hotel and 27-story office building, to private equity firm Starwood Capital Group, has been completed, Forest City announced today. The gross sales price for the property was $135 million.
Forest City expects its share from this transaction will result in cash proceeds of approximately $30 million. Closing the sale of the Liberty Center marks the seventh divestiture by Forest City in 2013, generating an estimated $124 million in total net cash this year, the company said.
David LaRue, Forest City's president and CEO commented, "This transaction continues our strategic effort to exit non-core products and markets, and to use proceeds from dispositions to improve our balance sheet, and invest in our mature portfolio and entitled development opportunities."
The Liberty Center hotel represented Forest City's last hotel property. Going forward, Forest City said it intends to focus on "apartment, retail, office and multi-use projects in our core markets."