8 spruce street case study
Read the 8 Spruce Street case study and answer these 4 questions. Answer the questions in order and list 1, 2, etc. Forest City was a REIT that was acquired by Brookfield in 2018. I’m looking for your analysis, pros/cons, and ability to apply what we have learned so far and your prior coursework. No outside sources needed. Answer all the questions and give evidence to support your statement. It would be great if there is data analysis. Please cite the page number if needed.
1. Should FCR have foreseen the choice with which they were faced in March 2009? Was it obvious? Consider the answer to this question while assessing the rental and condo market in New York City and Lower Manhattan through 2008.
2. If you were Gilmartin, would you halt construction or continue to build? If you continue to build, would you build residential rental units or condos? As you consider the options, what are the financing metrics of each? What role does financing play?
3. Should FCR “take the money and run” by selling off the existing 38 stories as condos and just cut their losses? What’s the analysis for this scenario?
4. Could FCR have dealt more effectively with the community given the lawsuits? What could they have done better?