Forest City Ratner has sold a stake in a portfolio of retail centers valued at $851.5 million to Madison International Realty.
Madison will receive a 49 percent equity interest in the partnership in exchange for an investment of $172.3 million in cash.
Subsidies of Forest City will retain 51% interest and serve as asset and leasing manager for the portfolio, which includes two prime Manhattan shopping destinations: the 42nd Street Retail and Entertainment Complex, located a block west of Times Square, and the retail component of the Harlem Center on 125th Street.
Elsewhere in the New York metro area, properties included in the transaction are Atlantic Center, Atlantic Terminal, and The Heights in Brooklyn; Queens Place, Steinway Street Theatres and Shops at Northern Boulevard in Queens; Shops at Bruckner Boulevard, Castle Center and Shops at Gun Hill Road in the Bronx; Shops at Richmond Avenue and Forest Avenue Cinemas on Staten Island; and Columbia Park in North Bergen, New Jersey.
“These are high-quality, productive specialty centers in good locations in one of the strongest markets in the country,” said Ronald Dickerman, president and founder of Madison International Realty. “We believe these assets have the ability to generate above average growth in this under-retailed market.”