Reckson Expands Presence in Premier New Jersey Office Park Purchasing

Reckson Expands Presence in Premier New Jersey Office Park Purchasing a 203,000 Square Foot Class A Office Building for Approximately $53.7 Million

    Business Editors

    MELVILLE, N.Y.--(BUSINESS WIRE)--Jan. 25, 2005--

Represents Fourth New Jersey Acquisition Within Six Months
    Reckson Associates Realty Corp. (NYSE: RA) announced today that the Company has closed on the acquisition of a 203,000 square foot, Class A office building located at Seven Giralda Farms in Madison, New Jersey, for approximately $53.7 million. This acquisition expands the Company's New Jersey portfolio to approximately 3.0 million square feet.
    Seven Giralda Farms is Reckson's third acquisition in the Giralda Farms Corporate Campus since July of 2004. Giralda Farms, one of New Jersey's premier office parks, encompasses 1.25 million square feet of Class A office space. The acquisition of Seven Giralda Farms follows the Company's recent purchases of One Giralda Farms, a 150,000 square foot Class A office building and Three Giralda Farms, a 141,000 square foot Class A office building. Reckson opportunistically acquired and now owns all of the non-owner occupied buildings in Giralda Farms Corporate Campus, furthering the Company's strategy to transform Giralda Farms into a premium quality, multi-tenant office park.
    Reckson also owns developable land in Giralda Farms Corporate Campus encompassing 154 acres with development rights for approximately 1.1 million square feet, of which 436,000 square feet is fully designed and approved for construction.
    Todd Rechler, Corporate Senior Vice President and Managing Director of Reckson's New Jersey Division, said, "With the addition of Seven Giralda Farms, we now own all of the non-owner occupied buildings in one of New Jersey's most desirable office parks. This acquisition, as well as the recent purchases of One and Three Giralda Farms, are consistent with our strategy to own the highest quality assets in New Jersey's best sub-markets. We now own approximately 1.3 million square feet of the highest quality assets in the Route 24 Corridor, one of the state's most prestigious sub-markets."
    Seven Giralda Farm was recently leased to four high quality credit tenants including Wyeth, Atlantic Mutual and Accordia Northeast, Inc., a subsidiary of Wells Fargo. The acquisition is expected to generate a GAAP net operating income ("NOI") yield of 8.5%. Reckson expects to generate cash NOI yields up to 9.0% based on the burn-off of scheduled rent abatements.
    Scott Rechler, Reckson's President and Chief Executive Officer, stated, "The Seven Giralda Farms acquisition represents our fourth strategic investment in New Jersey's Route 24 Corridor within six months despite very competitive market conditions. I am pleased with our team's ability to successfully leverage our regional relationships and market leadership position to effectively source attractive opportunities that are consistent with our focused growth strategy."
    Seven Giralda Farms is a three story, Class A office building, encompassing approximately 203,000 square feet and is distinguished by its architectural details which include such features as a granite and reflective glass facade and a two story granite and mahogany atrium lobby. The building is also distinguished by its elegant landscaping and amenities that include an on site cafe and below grade parking. Seven Giralda farms is well located with direct access to Route 24 and Interstate 287, minutes from the express trains to New York City and approximately 25 miles from both the Holland and Lincoln Tunnels.
    Giralda Farms Corporate Campus is located in the Route 24 Corridor sub-market which extends from Short Hills to Chatham/Madison and through the Florham Park region. This sub-market, which is known for its abundance of first-class amenities, is regarded as one of the most desirable sub-markets in New Jersey.
    Additionally, within the Route 24 Corridor sub-market, the Company owns Reckson Office Center, a three building, 565,000 square foot, Class A office park which is recognized as a premier corporate address in the Short Hills marketplace.
    Reckson Associates Realty Corp. is a self-administered and self-managed real estate investment trust (REIT) specializing in the acquisition, leasing, financing, management and development of Class A office properties.
    Reckson's core growth strategy is focused on the markets surrounding and including New York City. The Company is one of the largest publicly traded owners, managers and developers of Class A office properties in the New York Tri-State area, with 88 properties comprised of approximately 16.1 million square feet either owned or controlled, or under contract. For additional information on Reckson Associates Realty Corp., please visit the Company's web site at www.reckson.com.

    Certain matters discussed herein, including guidance concerning the Company's future performance, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Although the Company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, forward-looking statements are not guarantees of results and no assurance can be given that the expected results will be delivered. Such forward-looking statements are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those expected. Among those risks, trends and uncertainties are the general economic climate, including the conditions affecting industries in which our principal tenants compete; financial condition of our tenants; changes in the supply of and demand for office properties in the New York Tri-State area; changes in interest rate levels; changes in the Company's credit ratings; changes in the Company's cost of and access to capital; downturns in rental rate levels in our markets and our ability to lease or re-lease space in a timely manner at current or anticipated rental rate levels; the availability of financing to us or our tenants; changes in operating costs, including utility, real estate taxes, security and insurance costs; repayment of debt owed to the Company by third parties (including FrontLine Capital Group); risks associated with joint ventures; liability for uninsured losses or environmental matters; and other risks associated with the development and acquisition of properties, including risks that development may not be completed on schedule, that the tenants will not take occupancy or pay rent, or that development or operating costs may be greater than anticipated. For further information on factors that could impact Reckson, reference is made to Reckson's filings with the Securities and Exchange Commission. Reckson undertakes no responsibility to update or supplement information contained in this press release.

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CONTACT: Reckson Associates Realty Corp. Scott Rechler, CEO Michael Maturo, CFO Todd Rechler, Managing Director, NJ (631) 694-6900 (Phone) (631) 622-6790 (Facsimile) or Beckerman Public Relations Michael Beckerman (Media) (908)781-6420 (Phone)

KEYWORD: NEW YORK NEW JERSEY INDUSTRY KEYWORD: BANKING REAL ESTATE BUILDING/CONSTRUCTION MERGERS/ACQ SOURCE: Reckson Associates Realty Corp.

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