MELVILLE, N.Y., Oct 5, 2004 (BUSINESS WIRE) -- Reckson Associates
Realty Corp. (NYSE:RA) announced today that the Company has closed on
the acquisition of a 215,000 square foot, Class A office building
located at 44 Whippany Road in Morristown, New Jersey, for $30
million. The property, which will be renamed Reckson Office Center,
was acquired with cash and the issuance of common units of limited
partnership interest, valued at $28.70 per unit.
The acquisition of 44 Whippany Road follows Reckson's recent
acquisition of 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. With these acquisitions, Reckson
expands its leadership position as the "Landlord of Choice" in the
prestigious Route 24 Corridor, increasing Reckson's New Jersey
portfolio to over 2.6 million square feet.
Scott Rechler, Reckson's President and Chief Executive Officer,
stated, "These transactions are consistent with our strategic plan to
focus on Class A office product in the best sub-markets in the New
York Tri-State region and demonstrate our continued ability to source
investment opportunities and utilize creative structures to
effectively execute transactions which achieve above market returns."
Reckson expects to generate an initial net operating income
("NOI") yield of approximately 9.25% from 44 Whippany Road, which is
currently 91% leased. The yield is anticipated to increase to
approximately 10.5% over the next few years.
Todd Rechler, Corporate Senior Vice President and Managing
Director of Reckson's New Jersey Division, commented, "With this
acquisition, as well as with 3 Giralda Farms, Reckson remains focused
on building the premier portfolio in the most desirable market in the
state." Mr. Rechler continued, "Our philosophy of owning the best
assets in the best markets, along with our tenant-first approach, will
continue to enable Reckson to outperform in the local marketplace."
44 Whippany Road is a three story building, spanning 215,000
square feet and is distinguished by its rich and dramatic
architectural details, which include such features as distinctive wood
paneling, as well as a custom limestone, granite and glass facade. The
building is also distinguished by its elegant landscaping, 24/7 access
and security, and amenities that include an on site cafe and a walking
trail. The office complex is minutes from Interstate 287 and Route 24.
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.
SOURCE: Reckson Associates Realty Corp.
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
Anna Ciringione (Media)
908-781-6420 (Phone)
