CLEVELAND, July 12 /PRNewswire-FirstCall/ -- Forest City Enterprises, Inc., (NYSE: FCEA and FCEB) today announced that a subsidiary has closed the sale of 101 San Fernando, a 323-unit apartment community in San Jose, Calif. to a subsidiary of Essex Property Trust, Inc. (NYSE: ESS), a real estate investment trust based in California. The gross sale price was $59.6 million, representing a cap rate of approximately 5.0 percent, based on trailing 12-month net operating income. Forest City expects to realize net proceeds from the transaction of approximately $15 million.
"This transaction is a great example of selectively taking advantage of opportunities to capture value and generate liquidity from our portfolio," said Charles A. Ratner, Forest City president and chief executive officer. "We also worked with the buyer in late 2005 on the sale of Enclave, another San Jose-area apartment property. We believe strongly in the Northern California market and have a meaningful presence and asset base in the region, and we continue to invest in new development and new opportunities, particularly in the Bay area."
About Forest City
Forest City Enterprises, Inc., is an NYSE-listed national real estate company with $11.5 billion in total assets. 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 http://www.forestcity.net/.SOURCE Forest City Enterprises, Inc.