Forest City Enterprises Plans to Sell Remaining Land Holding in Central Station Development
- Sep 12, 2012
Cleveland-based Forest City Enterprises Inc. has signed a letter of intent to sell its remaining land holdings in the Central Station development, ChicagoRealEstateDaily.com reports. Located in the South Loop, the large-scale residential project has managed to transform the neighborhood before being hit by the condo crash. The developer has decided to sell its interest in Central Station land for around $30 million to an unnamed buyer.
According to a recent filing with the Securities and Exchange Commission, Forest City owns 30 acres at the south end of Grant Park. A Forest City spokesman said the company made a strategic decision to exit the land-development business and to focus on the company’s rental properties. The spokesman also said the company owns the land in a 50/50 joint venture with Chicago-based Fogelson Properties Inc.
The decision comes just two months after Forest City, Fogelson and Chicago-based Enterprise Cos. gave up around 500 unsold condominiums in three towers at the same Central Station development. The action was taken after failing to pay back construction loans utilized to finance the buildings.
The 80-acre project was launched over twenty years ago, and it remains one of the largest unfinished residential developments in Chicago. Stretching all the way to McCormick Place, it generated hefty profits during the condo boom. Yet as the condo market crashed, sales stalled.
Towards the end of 2010, Forest City wrote down the value of its Central Station investment by $18.3 million and later took another $17 million impairment charge on the investment, according to the SEC filing.
Photo Courtesy of: www.forestcity.net