Forest City Sells Military Housing Business to Hunt Cos. for $208.8M

by Katie Sloan

CLEVELAND — Cleveland-based Forest City Realty Trust Inc. (NYSE: FCEA and FCEB) has completed the sale of its military housing business to Hunt Cos. Inc. for $208.8 million.

The military housing business consists of fee-income streams from property management, asset management, and construction and development of family housing communities for the Navy, Marines and Air Force, as well as minority equity interest in the real estate at each location.

The business includes 14,500 housing units comprised of single-family homes, duplexes and triplexes.

Properties in the transaction include military housing installations at the Air Force Academy in Colorado Springs, Colo.; Air Force Southern Group, consisting of four Air Force bases including Arnold Air Force Base in Tennessee, Charleston and Shaw Air Force bases in South Carolina, and Keesler Air Force Base in Mississippi; Navy and Marine Corps bases in Hawaii; military housing associated with three Naval installations in the Puget Sound area of Washington; and six military housing communities at Naval Station Great Lakes in Illinois, Naval Surface Warfare Center in Crane, Ind., and Navy-Mid-South in Millington, Tenn.

As part of the transaction, Hunt is extending employment offers to the majority of Forest City’s associates currently in the military housing business.

Hunt Cos. Inc. is a holding company based in El Paso, Texas, that invests and operates in businesses focused in the real estate and infrastructure markets.

Forest City Realty Trust Inc. is a national real estate company with $10 billion in assets. The company owns, develops, manages and acquires commercial and residential real estate throughout the U.S.

Forest City Realty’s stock closed at $18.07 (FCEA) and $17.84 (FCEB) per share on Monday, Feb. 22, down from $25.37 and $25.30, respectively, a year prior.

Katie Sloan

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