Welcome!

News Feed Item

TIAA-CREF Invests with Forest City Ratner Companies and the INDURE Fund in New York by Gehry at Eight Spruce Street in New York City

TIAA-CREF adds a rarely-traded, top-quality multifamily asset to its diversified portfolio;

NEW YORK, Dec. 21, 2012 /PRNewswire/ -- Forest City Ratner Companies, a subsidiary of Forest City Enterprises, Inc., the INDURE Fund, a commingled real estate fund managed by National Real Estate Advisors (NREA), and TIAA-CREF, a leading financial services provider, today announced that TIAA-CREF has acquired a 49 percent equity ownership in the residential portion of New York by Gehry at Eight Spruce Street, the award-winning Frank Gehry-designed building, that has redefined the New York City skyline.  

This transaction values the 76-story, 898-unit high rise at $1.05 billion. Original partners Forest City and NREA are retaining 26 and 25 percent stakes, respectively.  Prior to TIAA-CREF's investment, Forest City was 51 percent equity owner and NREA 49 percent. 

 "The valuation of this tower is the result of a tremendous amount of planning and care, with respect to everything from site selection to the building's world-class design and top-tier amenities and management. Our goal has been to bring condominium-quality living to the luxury rental market, and it is clear today that we have succeeded," said Bruce C. Ratner, Chairman and CEO of Forest City Ratner Companies. "Frank Gehry's first-ever skyscraper has truly transformed the skyline, becoming a 'vertical city' that emblemizes the vitality of Lower Manhattan as a burgeoning live-work neighborhood. It's wonderful to co-invest with an institution like TIAA-CREF in this endeavor."

Real estate provides investors an opportunity to create long-term growth and diversification and a potentially stronger hedge against inflation compared to publicly traded equities and fixed income investments.  Historically, apartment assets outperform the NCRIEF property index more frequently than any other real estate sector.1

"We believe that high-quality multi-family assets in cities with the strongest demographics such as New York can be powerful additions to our well-diversified real estate portfolios," said Phil McAndrews, head of real estate transactions and joint ventures, TIAA-CREF.  "The opportunity to invest in state-of-the-art, high-rise urban apartment complexes can be rare and we look forward to working with Forest City to maximize the value of this asset for our clients over the long-term." 

Jeffrey J. Kanne, President and CEO of National Real Estate Advisors, said that National was "very pleased to be broadening our partnership to include one of the country's preeminent real estate investors.  We believe the high quality of our new partnership is reflective of the extraordinary quality of New York by Gehry and we look forward to working together for many years to come."

"This transaction between Forest City, National Real Estate Advisors and TIAA-CREF is truly befitting of New York by Gehry, one of the world's most iconic residential towers. This was a rare and outstanding institutional investment opportunity to acquire an ownership position in a high-performing, prestigious property with one of the country's finest developers." said Darcy Stacom, CBRE Vice Chairman.

TIAA-CREF owns more than $19 billion of primarily high-quality properties in the office, retail, industrial and multifamily sectors across the United States, Canada and Western Europe as of September 30, 2012.

1 Based on NCREIF NPI Index and individual sector indices, the apartment sector outperforms the total NPI with a higher frequency than any other sector on a quarterly basis since its inception in first quarter 1978, at 64 percent of the time.

About New York by Gehry at Eight Spruce Street
New York by Gehry at Eight Spruce Street, the tallest all-residential building in America, opened in 2011 to global acclaim. With its curving exterior curtain wall comprised of 10,000 unique steel panels, the tower is a major addition to the Manhattan skyline, existing in lively conversation with nearby landmarks—the Woolworth Building and the Brooklyn Bridge. Marking its opening in 2011, New York Times architecture critic declared New York by Gehry the "finest skyscraper to rise in New York" in nearly a half-century.  The building's 898 units include family-friendly two and three bedroom apartments, as well as three remarkable penthouses.

Gehry's design carries the drama of the exterior curtain wall movement into residents' private spaces, the building's folds result in some 200 unique apartment layouts. Where the facade undulates outward, large free-form bay windows that change location from floor to floor make the most of the building's unique site, allowing for unobstructed panoramic views in every direction.

In a rare arrangement, Frank Gehry not only designed the building's exhilarating facade but all of the interiors and amenity spaces, curating all finishes and fixtures. Residents of New York by Gehry have exclusive access to a host of lifestyle services from a full-service concierge, on-site valet services to health, wellness, social and entertainment amenities across 22,000 square-feet of indoor and outdoor space.  These amenity spaces are alive with robust programming tailored to tenant and family interests.

The mixed-use development includes a five-story, 100,000-square-foot Spruce Street School, as well as doctors' offices for physicians associated with New York Downtown Hospital. There is 26,000 square feet of below-grade parking for 175 cars for hospital use.

Another highlight of New York by Gehry is its ground floor outdoor open space, two beautifully-landscaped public plazas totaling 15,000-square-feet, designed by Field Operations, the creative force behind Manhattan's High Line, in collaboration with Dutch horticulturist Piet Oudolf, who collaborated with Gehry on Chicago's Millennium Park.

About Forest City Ratner Companies 
Forest City Ratner Companies (FCRC), a wholly owned subsidiary of Forest City Enterprises, Inc., owns and operates 34 properties in the New York metropolitan area. Forest City Enterprises is an NYSE-listed national real estate company with $10.7 billion in total assets. FCRC properties include the Renzo Piano-designed New York Times headquarters in Midtown Manhattan; MetroTech Center in Downtown Brooklyn, the 1.3 million square foot Westchester's Ridge Hill regional shopping center in Yonkers; and the 18,000-seat Barclays Center arena in Brooklyn, part of the $4.9 billion Atlantic Yards mixed-use project currently in construction. For more information, visit http://www.forestcity.net.

About NREA and INDURE
National Real Estate Advisors, LLC (www.natadvisors.com) is an independent real estate advisor specializing in real estate investments on behalf of large institutional investors.  National manages nearly $2 billion of client capital and invests based on its "Build-to-Core" philosophy, carefully selecting development projects to add to the core of its portfolio.  The strategy is designed to create a modern portfolio with lasting value. 

The IBEW-NECA Diversified Underwritten Real Estate Fund (INDURE) is an open-ended commingled real estate investment fund managed by NREA which invests equity and debt in institutional quality, geographically-diversified properties nationwide.

About TIAA-CREF
TIAA-CREF (www.tiaa-cref.org) is a national financial services organization with $495 billion in assets under management (as of 9/30/12) and is the leading provider of retirement services in the academic, research, medical and cultural fields.

TIAA-CREF Individual & Institutional Services, LLC and Teachers Personal Investors Services, Inc., members FINRA, distribute securities products.

Past performance does not guarantee future results.

Real estate investments are subject to various risks, including fluctuations in property values, higher expenses or lower income than expected, and potential environmental problems and liability.    

The TIAA General Account is an insurance company account and does not present an investment return, and is not available to investors.

SOURCE Forest City Ratner Companies

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
While DevOps most critically and famously fosters collaboration, communication, and integration through cultural change, culture is more of an output than an input. In order to actively drive cultural evolution, organizations must make substantial organizational and process changes, and adopt new technologies, to encourage a DevOps culture. Moderated by Andi Mann, panelists discussed how to balance these three pillars of DevOps, where to focus attention (and resources), where organizations might...
After more than five years of DevOps, definitions are evolving, boundaries are expanding, ‘unicorns’ are no longer rare, enterprises are on board, and pundits are moving on. Can we now look at an evolution of DevOps? Should we? Is the foundation of DevOps ‘done’, or is there still too much left to do? What is mature, and what is still missing? What does the next 5 years of DevOps look like? In this Power Panel at DevOps Summit, moderated by DevOps Summit Conference Chair Andi Mann, panelists loo...
"When we talk about cloud without compromise what we're talking about is that when people think about 'I need the flexibility of the cloud' - it's the ability to create applications and run them in a cloud environment that's far more flexible,” explained Matthew Finnie, CTO of Interoute, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
No hype cycles or predictions of zillions of things here. IoT is big. You get it. You know your business and have great ideas for a business transformation strategy. What comes next? Time to make it happen. In his session at @ThingsExpo, Jay Mason, Associate Partner at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He discussed the evaluation of communication standards and IoT messaging protocols, data analytics considerations, edge-to-cloud tec...
@DevOpsSummit at Cloud Expo taking place Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center, Santa Clara, CA, is co-located with the 21st International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is ...
When growing capacity and power in the data center, the architectural trade-offs between server scale-up vs. scale-out continue to be debated. Both approaches are valid: scale-out adds multiple, smaller servers running in a distributed computing model, while scale-up adds fewer, more powerful servers that are capable of running larger workloads. It’s worth noting that there are additional, unique advantages that scale-up architectures offer. One big advantage is large memory and compute capacity...
The financial services market is one of the most data-driven industries in the world, yet it’s bogged down by legacy CPU technologies that simply can’t keep up with the task of querying and visualizing billions of records. In his session at 20th Cloud Expo, Karthik Lalithraj, a Principal Solutions Architect at Kinetica, discussed how the advent of advanced in-database analytics on the GPU makes it possible to run sophisticated data science workloads on the same database that is housing the rich...
In the world of DevOps there are ‘known good practices’ – aka ‘patterns’ – and ‘known bad practices’ – aka ‘anti-patterns.' Many of these patterns and anti-patterns have been developed from real world experience, especially by the early adopters of DevOps theory; but many are more feasible in theory than in practice, especially for more recent entrants to the DevOps scene. In this power panel at @DevOpsSummit at 18th Cloud Expo, moderated by DevOps Conference Chair Andi Mann, panelists discussed...
New competitors, disruptive technologies, and growing expectations are pushing every business to both adopt and deliver new digital services. This ‘Digital Transformation’ demands rapid delivery and continuous iteration of new competitive services via multiple channels, which in turn demands new service delivery techniques – including DevOps. In this power panel at @DevOpsSummit 20th Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, panelists examined how DevOps helps to meet the de...
What's the role of an IT self-service portal when you get to continuous delivery and Infrastructure as Code? This general session showed how to create the continuous delivery culture and eight accelerators for leading the change. Don Demcsak is a DevOps and Cloud Native Modernization Principal for Dell EMC based out of New Jersey. He is a former, long time, Microsoft Most Valuable Professional, specializing in building and architecting Application Delivery Pipelines for hybrid legacy, and cloud ...
Amazon started as an online bookseller 20 years ago. Since then, it has evolved into a technology juggernaut that has disrupted multiple markets and industries and touches many aspects of our lives. It is a relentless technology and business model innovator driving disruption throughout numerous ecosystems. Amazon’s AWS revenues alone are approaching $16B a year making it one of the largest IT companies in the world. With dominant offerings in Cloud, IoT, eCommerce, Big Data, AI, Digital Assista...
Artificial intelligence, machine learning, neural networks. We’re in the midst of a wave of excitement around AI such as hasn’t been seen for a few decades. But those previous periods of inflated expectations led to troughs of disappointment. Will this time be different? Most likely. Applications of AI such as predictive analytics are already decreasing costs and improving reliability of industrial machinery. Furthermore, the funding and research going into AI now comes from a wide range of com...
For organizations that have amassed large sums of software complexity, taking a microservices approach is the first step toward DevOps and continuous improvement / development. Integrating system-level analysis with microservices makes it easier to change and add functionality to applications at any time without the increase of risk. Before you start big transformation projects or a cloud migration, make sure these changes won’t take down your entire organization.
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devic...