Forest City, Equity Commonwealth Consider Merger To Form New $10B REIT

Office real estate owner Equity Commonwealth and Forest City Realty Trust are in talks about a potential merger. 

Chicago-based Equity, chaired by real estate mogul Sam Zell, approached Forest City about the deal. The merging of the two REITs would form a new entity focused solely on office and apartments, Reuters reports. If the deal moves forward, the REIT would be worth more than $10B, making it one of the largest mergers of 2017.

Both REITs have faced scrutiny from activist investors as of late; Forest City investors Scopia Capital Management and Land & Buildings have pushed for immediate strategic changes. 

To accommodate the requests, Forest City is exploring strategic options to enhance shareholder value and is considering an all-stock merger with Equity Commonwealth, as well as the possibility of a sale. In the spring, the REIT offloaded $4B worth of retail assets in a trade-off deal with QIC Global Real Estate to get rid of some of its non-core assets

Under similar pressure from investors, Equity Commonwealth has also made moves to assuage investor concerns, such as changing its name from Commonwealth REIT, hiring new management, bringing billionaire Sam Zell aboard as chairman and selling off properties. Equity Commonwealth currently has a market capitalization of $3.8B.

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's National Newsletters
Related Stories

Bisnow's 2026 DEI Data Series

America's Data Centers Are Running Out Of People Who Know How To Run Them

Ruben Cos. Says It Can't Sell, Finance Navy Yard Multifamily Project

Why Data Centers Crave Simplicity As Operations Grow More Complex

Blackstone Looks To Secondary Market To Cash Out Investors In $11B Fund

CalSTRS Plans $5B In New CRE Investments

Ares, Canadian Pension Investor Launch $2.4B U.S. Logistics JV

Troubled Multifamily Loans Face A Refinancing Problem: Who Puts In New Equity?

Toys R Us Plans 120 New Stores Ahead Of The Holidays

NYC Lawmakers Consider Mandating Lease Extensions For Retailers

NYC Pushes To Use Opportunity Zone 2.0 For Mamdani's Housing Goals

DOJ Charges LA Nonprofit Workers With Misusing $8.7M Meant For Housing Aid