Forest City Completes Sale of New York Retail Center

CLEVELAND, Ohio, April 28 /PRNewswire-FirstCall/ -- Forest City Enterprises, Inc. (NYSE: FCEA) (NYSE: FCEB) today announced the sale by its subsidiary of The Shops at Grand Avenue, a retail center located in the Borough of Queens. The property was purchased by an affiliate of AEW Capital Management, LP, for a selling price of $33.5 million, representing a cap rate of approximately 7.75 percent on in-place income. The transaction, which closed April 16, 2009, generated proceeds of approximately $9.4 million, net of partner tax indemnification.

"We have always been an active seller of real estate from our portfolio," said Charles A. Ratner, Forest City president and chief executive officer. "Today, selective sales, joint ventures and other structures are part of our strategy to generate liquidity in response to current economic and financial-market conditions. As this transaction demonstrates, our high-quality properties in strong markets continue to attract buyer interest, even in a down market."

The Shops at Grand Avenue, which opened in 1997, is a 100,000-square-foot community center anchored by Stop & Shop, and featuring tenants including Party City, Mandee and Ridgewood Savings Bank.

About Forest City

Forest City Enterprises, Inc. is a $11.4 billion NYSE-listed national real estate company. The Company is principally engaged in the ownership, development, management and acquisition of commercial and residential real estate and land throughout the United States. For more information, visit www.forestcity.net.