Friday July 19th, 2013 - 9:16AM
PITTSBURGH—Forest City Enterprises, Inc. 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,” stated David J. LaRue, president and CEO of Forest City. “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.