MELVILLE, N.Y., Apr 11, 2005 (BUSINESS WIRE) -- Reckson Associates Realty Corp. (NYSE: RA) announced today that the Company has provided two separate mezzanine loans, totaling approximately $28.4 million, on a 32 property office portfolio, encompassing approximately 1.5 million square feet. These properties are part of the 43 property former Tilles office portfolio located in Woodbury, Long Island. The two loans, a five-year loan and a seven-year loan, each have an interest rate of 9.0% per annum. The loans provide for a lock out on repayment of 18 months.

Scott Rechler, Reckson's President and Chief Executive Officer, stated, "This transaction provides us with the opportunity to leverage our relationships and market knowledge in order to participate in investments in office properties in the New York Tri-State area that are consistent with our existing portfolio, via another investment venue. This structured finance investment is an excellent vehicle for us to access an attractive investment secured by well located office properties that provide an opportunity for us to continue to capitalize on the strength of the Long Island market recovery."

Reckson has completed investments totaling approximately $106 million year to date. In addition to this structured finance investment, the Company acquired two properties located in Northern New Jersey's Giralda Farms office park -- a 150,000 square foot, Class A office building located at One Giralda Farms for approximately $24.3 million and a 203,000 square foot, Class A office building located at Seven Giralda Farms for approximately $53.7 million. With these two acquisitions, Reckson completed four strategic investments in New Jersey's Route 24 Corridor within six months, despite very competitive market conditions.

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 89 properties comprised of approximately 16.3 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; 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.

SOURCE: Reckson Associates Realty Corp.

Reckson Associates Realty Corp., Melville Scott Rechler, CEO/Michael Maturo, CFO 631-694-6900 Facsimile: 631-622-6790