Disposition generates approximately $18.5 million in net cash proceeds.
CLEVELAND- Forest City Enterprises, Inc. 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.”
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