Forest City Enterprises said Friday that it has completed its sale of the Sheraton Station Square to Station Square Pittsburgh Hotel for $61 million. According to Forest City, the company has received net cash proceeds from the sale of approximately $18.5 million. The Station Square Pittsburgh Hotel is a joint venture led by Pyramid Hotel Group and an affiliate of Glenmont Capital Management, a New York-based real estate private equity fund manager. Sheraton Station Square is a 399-room hotel in Pittsburgh.
CLEVELAND, July 19, 2013 /PRNewswire/ — Forest City Enterprises, Inc., (NYSE: FCEA and FCEB) today announced that it has completed the disposition of the Sheraton Station Square, a 399-room hotel in Pittsburgh, to Station Square Pittsburgh Hotel LLC, a joint venture led by Pyramid Hotel Group and including an affiliate of Glenmont Capital Management, LLC. Pyramid will operate the hotel under a long-term Sheraton franchise agreement with Starwood Hotels. The selling price was $61 million, generating net cash proceeds to Forest City of approximately $18.5 million.
“We’re pleased to complete this transaction with an experienced owner/operator such as Pyramid and their joint venture partners,” said David J. LaRue, Forest City president and chief executive officer. “We continue to execute our strategy of exiting non-core products and markets, and using liquidity from dispositions to further improve our balance sheet, invest in our mature portfolio and activate entitled development opportunities in core markets.”
The Sheraton Station Square Hotel, which features over 30,000 square feet of indoor meeting space, is located adjacent to historic Station Square, Forest City’s retail/entertainment complex along the Monongahela River in downtown Pittsburgh. The Plasencia Group represented Forest City in the transaction.
“We are excited to complete this transaction with Forest City and acquire a premier downtown Pittsburgh asset,” said Jim Dina, chief operating officer of Pyramid Hotel Group. “Pittsburgh is a highly stable lodging market and the Sheraton Station Square offers an unmatched guest experience within the Station Square mixed-use development. The many planned renovations to the hotel promise to assist our dedicated staff in delivering a superior level of service for residents and leisure, corporate, and group travelers. We look forward to continuing the many partnerships that Forest City has fostered within the Pittsburgh community.”
About Forest City
Forest City Enterprises, Inc. is an NYSE-listed national real estate company with $10.6 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 www.forestcity.net.
About Pyramid Hotel Group
Pyramid Hotel Group is a privately-held, Boston-based hotel company with 54 hotels and resorts under hotel management and asset management, comprising more than 20,000 rooms and approximately 8,500 employees. Pyramid Hotel Group, ranked among the largest U.S. hotel management companies by independent sources, provides hotel management, resort management, asset management, and project management services to a broad array of hotel assets. Pyramid Hotel Group is a franchisee of all the major hotel brand companies and an operator of independent four-and five-star hotels and resorts. Additional information is available at www.pyramidhotelgroup.com
About Glenmont Capital Management
Founded in 2000 by Lawrence A. Kestin, Glenmont Capital Management, LLC (“Glenmont”) is a New York-based real estate private equity fund manager focused on real estate investments throughout the United States. Glenmont manages a series of closed-end, institutionally backed investment funds seeking both value-add and opportunistic investments in distressed and underperforming real estate, select development opportunities, non-performing loans and real estate operating companies. Additional information is available at www.glenmontcapital.com