Forest City Acquires 2,500 Lots for Residential Development in San Antonio
Acquisition Includes Sites in Five Premier Subdivisions
CLEVELAND, Jan 07, 2008 (BUSINESS WIRE) — Forest City Enterprises, Inc. (NYSE:FCEA)(NYSE:FCEB) announced today that its Forest City Land Group business unit and joint venture partner Covington Capital Corporation have completed the acquisition of more than 2,500 single-family home lots in the San Antonio, Texas, market. Forest City and Covington Capital have gained an immediate presence in the market by acquiring lot positions and land in several planned communities in the area, including Alamo Ranch, Stillwater Ranch, Ashton Park, Indian Springs and Heights of Cibolo, among others.
The land and lots, acquired from Standard Pacific Homes of Irvine, California, include finished lots as well as future platted lots and encompass price ranges which will serve both first-time homeowners as well as move-up buyers.
“This is an example of our stated strategy of taking advantage of national market conditions to selectively acquire properties and land in key markets. The solid underlying fundamentals of the San Antonio market, including job growth, attractive cost of living and the recreational opportunities provided by the Hill Country area all provide a positive outlook for the single-family market in the long-term,” said Bob Monchein, President of Forest City Land Group.
According to the Texas Workforce Commission CES Survey, Greater San Antonio created 15,500 net new jobs for the 12-month period ended November, 2007. While job growth has slowed from highs seen in late 2005 and 2006, the 2007 survey continues to show solid growth.
Seeing a similar pattern of growth, Cassie Gibson of Residential Strategies, Inc., stated, “The outlook for the Greater San Antonio new home market remains positive, despite the overall national housing market and credit market woes.”
Forest City’s entrance into the San Antonio market continues the relationship between Covington Capital and Forest City, which have worked in partnership on Mesa del Sol, a 12,000-acre development in Albuquerque, New Mexico, Forest City’s largest project currently under development, as well as on Paseo del Este, a 4,400-acre development in El Paso, Texas, along with other commercial property in the El Paso region.
About Forest City Enterprises
Forest City Enterprises, Inc. is a $10 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.
About Covington Capital Corporation
Covington Capital Corporation (CCC), based in Santa Monica, CA, is a privately owned real estate investment and development company that has been in business over 25 years. CCC has been active throughout the United States developing raw land, commercial, and industrial projects.
Safe Harbor Language
Statements made in this news release that state the Company’s or management’s intentions, hopes, beliefs, expectations or predictions of the future are forward-looking statements. The Company’s actual results could differ materially from those expressed or implied in such forward-looking statements due to various risks, uncertainties and other factors. Real estate development risks and factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, the inability to secure sufficient financing on favorable terms, construction risks, increases in commodity costs, the inability to obtain required governmental permits and authorizations, the inability to secure tenants or anchors for the project, the withdrawal of a prospective anchor or project partner, opposition from third parties, competition in the target market, economic conditions in the target market, the adverse impact of environmental matters, softening of the housing market, and other risk factors as disclosed from time to time in the Company’s SEC filings, including but not limited to, the Company’s annual and quarterly reports.
SOURCE: Forest City Enterprises, Inc.
Forest City Enterprises, Inc.
Nancy McCann, 216-416-3004
nancymccann (at) forestcity (dot) net
or
Kenneth Sheer, 702-419-4837
ksheer (at) covingtoncapital (dot) com
