Liberty Center complex Downtown sold by Forest City for $135M
Starwood Capital Group of Greenwich, Conn., has bought Liberty Center, Downtown, for $135 million.
Forest City Enterprises Inc. and its partner, Jos. L. Muscarelle Inc., sold the 27-story office building, an asset “situated in a market that has increasingly attractive fundamentals,” said Starwood Vice President Jeff Shuster.
The sale follows Forest City's recent sale of the Sheraton Station Square hotel. It will generate cash for Forest City of about $30 million after it pays off a mortgage and other expenses.
The $61 million sale of the 399-room Sheraton Station Square hotel last month to a group led by Pyramid Hotel Group netted Forest City $7.75 million. Pyramid plans to renovate the South Side hotel.
The 616-room Westin Convention Center hotel, located within Liberty Center, will continue to operate as a Westin under a long-term management agreement with Starwood Hotels, which manages the hotel and is not affiliated with Starwood Capital.
Liberty Center includes the Federated Investors office tower, with Federated Investors as a major tenant, and a retail shopping arcade and underground parking. The Westin connects to the David L. Lawrence Convention Center via an enclosed pedestrian bridge over Penn Avenue.
Forest City has taken Station Square off the market, but company officials have said they would consider offers.
The Liberty Center sale “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 development opportunities,” said David J. LaRue, Forest City president and CEO.
The Westin Convention Center hotel was the last in its portfolio and marks the company's exit from the business, he said.
Forest City recently completed a swap with Zamagias Properties of Pittsburgh for full ownership of The Mall at Robinson. It acquired 28 percent ownership of Zamagias and, in turn, sold its 50 percent ownership of the Plaza at Robinson Town Centre to Zamagias, netting $18.5 million in the deal.
Sam Spatter is a Trib Total Media staff writer. Reach him at 412-320-7843 or email@example.com.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Crazy Mocha owner likes comfort, says shrewd decisions foster growth
- After years of downsizing, big houses make comeback
- Investors shy from Israeli drugmaker Teva amid uncertain Mylan takeover
- Atlantic City on hot streak with non-gambling ventures
- Farm use of drones to take off as feds loosen restrictions
- No more ‘roar’ as famed trading pits come to an end
- Crude oil tumble signals low gasoline prices this fall
- New J.C. Penney CEO comes from middle-income America
- Pittsburgh’s tech startup activity rates last of 40 metro areas in report
- Floating homes offer ‘affordable’ option in San Francisco area
- Corporate America speaking out on social issues, getting results