Exhibit 99.1
Forest City Announces Plans for Brooklyn Atlantic Yards
CLEVELAND--(BUSINESS WIRE)--Jan. 23, 2004--
Mixed-use development in downtown Brooklyn is expected to feature
new 800,000-square-foot sports and entertainment arena
for the Nets NBA basketball team
Forest City Enterprises, Inc. (NYSE:FCEA) (NYSE:FCEB) today
announced that its New York affiliate is planning to develop Brooklyn
Atlantic Yards, a $2.5 billion mixed-use project in downtown Brooklyn
whose main attraction would be a new sports and entertainment arena
for the Nets NBA basketball team.
Upon receipt of necessary approvals for the acquisition and
development of real estate projects, the 800,000-square-foot Brooklyn
Arena will be developed by Forest City Ratner Companies and designed
by world-renowned architect Frank Gehry. The Arena is envisioned as
the focal point of Brooklyn Atlantic Yards, an urban complex of
housing, commercial and retail space. In addition to serving as a
professional sports complex and an international entertainment
destination, the Arena is expected to become an integral part of the
local community, hosting local sporting events, concerts, family
entertainment, and corporate and special events.
Brooklyn Atlantic Yards is a long-term development project
expected to include, when completed, 2.1 million square feet of
commercial office space; 300,000 square feet of retail space; 4.4
million square feet of residential space, consisting of approximately
4,500 units of affordable, middle-income and market-rate housing; and
six acres of parks and open space.
Bruce Ratner, president and chief executive officer of Forest City
Ratner Companies, is leading a group of investors that has reached an
agreement to buy the National Basketball Association's Nets team. Upon
approval of the $300 million purchase, Forest City Ratner will own
approximately a 10 to 15 percent interest in the team.
"Today is a great day for Brooklyn," said Bruce Ratner. "I look
forward to rooting for the 'home team' in our spectacular new Arena.
Now that Brooklyn has its own professional basketball team, we can
continue to implement the vision of a re-energized downtown Brooklyn.
This project will be a part of the unique urban fabric of Brooklyn - a
dynamic commercial and recreational destination complementing vibrant
residential neighborhoods."
"Bruce has been a driving force in the ongoing revitalization of
downtown Brooklyn," said Charles A. Ratner, president and chief
executive officer of Forest City Enterprises. "His efforts reflect
Forest City's commitment to urban economic development, which brings
communities together, creates jobs, and makes cities like Brooklyn
great places to live, work and play. As we have done with MetroTech
Center and Atlantic Terminal, we will partner with local officials and
residents to develop a first-class mixed-use project."
The Brooklyn Atlantic Yards site is adjacent to Atlantic Terminal,
the third-largest transportation hub in New York City, where nine
different subway lines and the Long Island Railroad converge. Forest
City Ratner Companies is also currently developing a four-story retail
center and 10-story office building at Atlantic Terminal, whose
primary office tenant will be The Bank of New York.
The investment in the team and related development of the
surrounding Brooklyn Atlantic Yards by Forest City Ratner Companies,
along with several other partners, is consistent with Forest City's
business strategy of concentrating on high-growth,
high-barrier-to-entry urban markets where the Company has gained
access to large, complex commercial, residential and mixed-use
projects. Forest City has been working to revitalize downtown Brooklyn
for nearly 20 years, including serving as master developer of the
10-block, 16-acre MetroTech Center office campus - which is now home
to major tenants such as Chase Manhattan, Bear Stearns, Goldman Sachs,
Internal Revenue Service, Morgan Stanley, New York City Police and
Fire Departments, and Empire Blue Cross and Blue Shield.
Corporate Description
Forest City Enterprises, Inc. is a $5.7 billion NYSE-listed real
estate company headquartered in Cleveland, Ohio. The Company is
principally engaged in the ownership, development, acquisition and
management of commercial and residential real estate throughout the
United States. The Company's portfolio includes interests in retail
centers, apartment communities, office buildings and hotels in 22
states and the District of Columbia.
Safe Harbor Language
Statements made in this news release that state the Company or
management's intentions, hopes, beliefs, expectations or predictions
of the future are forward-looking statements. It is important to note
that the Company's actual results could differ materially from those
projected in such forward-looking statements. Additional information
concerning factors that could cause actual results to differ
materially from those in the forward-looking statements include, but
are not limited to, the receipt of necessary approvals for the
acquisition and development of real estate projects (including the
approval of the purchase of the Nets by the National Basketball
Association), real estate development and investment risks, economic
conditions in the Company's target markets, reliance on major tenants,
the impact of terrorist acts, the Company's substantial leverage and
the ability to service debt, guarantees under the Company's credit
facility, changes in interest rates, continued availability of
tax-exempt government financing, the sustainability of substantial
operations at the subsidiary level, significant geographic
concentration, illiquidity of real estate investments, dependence on
rental income from real property, conflicts of interest, competition,
potential liability from syndicated properties, effects of uninsured
loss, environmental liabilities, partnership risks, litigation risks,
and other risk factors as disclosed from time to time in the Company's
SEC filings, including, but not limited to, the Company's Annual
Report on Form 10-K for the year ended January 31, 2003.
CONTACT: Forest City Enterprises, Inc.
Thomas G. Smith, 216-621-6060
Thomas T. Kmiecik, 216-621-6060
www.forestcity.net