SHORT HILLS, N.J.--(BUSINESS WIRE)--Oct. 6, 2004--Reckson Associates Realty Corp. (NYSE: RA) announced today that Daiichi Pharmaceutical Corporation ("Daiichi") has signed a long-term lease to occupy the entire building at the Company's newly acquired 3 Giralda Farms. Reckson acquired 3 Giralda Farms, a 141,000 square foot, Class A office building located within the highly desirable Giralda Farms Corporate Campus in Madison, New Jersey, in July of 2004.

CB Richard Ellis' Jeffrey Babikian, Senior Vice President, and Linda Dow, Executive Vice President, represented Daiichi in this transaction. Daiichi also qualified for grants under the Business Employment Incentive Program ("BEIP") legislation.

Todd Rechler, Corporate Senior Vice President and Managing Director of Reckson's New Jersey Division, stated, "We are very pleased to announce this full-building lease at 3 Giralda just two months after we acquired this trophy asset and to welcome Daiichi to our premier roster of tenants." Mr. Rechler continued, "This acquisition and subsequent lease transaction validates our ability to execute our strategy of opportunistically purchasing high quality properties with existing vacancy in areas where we have dominant market share. We congratulate the team of Jeffrey Babikian and Linda Dow for partnering with Reckson to meet all of Daiichi's needs in such a timely manner."

Over the past few years, Daiichi has grown its United States employment base to total approximately 400 individuals, 200 of whom are located in New Jersey. As a result of Daiichi's expansion, and in considering their goals of attaining seamless collaboration, as well as increasing its efficiency in two of its major overseas divisions, 3 Giralda Farms was the perfect fit for their needs.

3 Giralda Farms is a four story, Class A office building, situated within a park-like setting, offering outstanding architectural details and featuring amenities that include a cafe, health club, teleconference facilities, a 55-seat auditorium and all below grade parking. The facility is strategically located with direct access to Routes 24 and 287, minutes from the express trains to New York City and 25 miles from both the Holland and Lincoln Tunnels.

Built in the 1990s, 3 Giralda Farms is part of Giralda Farms Corporate Campus, a 1.25 million square foot complex of Class A office buildings. In addition to 3 Giralda, Reckson also owns 154 acres of land at Giralda Farms with development rights of approximately 1.1 million square feet, with 436,000 square feet already fully designed and approved for construction.

The Route 24 Corridor sub-market, where 3 Giralda Farms is located, is known for its abundance of first-class amenities including the 5-Diamond Hilton Short Hills, the exclusive Mall at Short Hills, noted restaurants, conference centers and renowned arts venues like the Paper Mill Play House. This corridor, which is regarded as the most desirable sub-market in New Jersey, extends from Short Hills to Chatham/Madison and to the Florham Park region.

Within the prestigious Route 24 Corridor/Short Hills sub-market, Reckson also owns and operates Reckson Office Center, a 565,000 square foot, Class A corporate campus, recognized as the premier corporate address in this marketplace. Reckson Office Center has undergone substantial improvements at its 101 and 103 JFK Parkway buildings resulting in tremendous leasing success. The third building comprising Reckson Office Center, 51 JFK Parkway, is regarded as one of the most coveted locations in New Jersey, with unparalleled design and amenities. Existing tenants of Reckson Office Center include Dun & Bradstreet, Franklin Mutual, Investor Savings Bank, Edwards & Angell LLP, Fairholme Capital Management, LLC, Wachovia Securities, Morgan Stanley and Merrill Lynch.

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 87 properties comprised of approximately 15.9 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.

CONTACT: Reckson Associates Realty Corp.
Todd Rechler, Managing Director, NJ
Scott Rechler, CEO
Michael Maturo, CFO
Salvatore Campofranco, COO
973-313-3300 (Phone)
973-313-3301 (Facsimile)
or
Beckerman Public Relations
Anna Ciringione (Media)
908-781-6420 (Phone)
SOURCE: Reckson Associates Realty Corp.