Scope of Capital Improvement Project Announced at Gala Event
MELVILLE, NY - June 21, 2006 - Reckson Associates Realty Corp. (NYSE: RA) today
announced the exciting broad scope of Westchester County's largest ever capital
improvement project at the Company's newest trophy office park, Reckson Platinum
Mile. Reckson's strategy for the 14-building, 1.6 million square foot, Class
A office portfolio was presented at a gala event before a huge gathering of
Westchester's public officials, and dignitaries and professionals from Westchester
and Manhattan's leading brokerage firms.
The event was held at the centrally located property at the heart of the Westchester
County business corridor as a forum for Scott Rechler, Reckson's Chief Executive
Officer, as well as the high-caliber senior management team, to detail the Company's
plans for the dramatic repositioning. The incredible response from all of the
major brokerage teams from New York City and their regional offices highlights
the level of interest this property commands as a result of its prominence in
the Westchester marketplace. The event underscores Reckson's expertise and commitment
in restoring this asset to its historical reputation as one of the highest quality
office parks with exceptional interior and exterior architectural design and
finishes, newest technology and most importantly, extraordinary level of service
provided to tenants.
"We are excited both by the event's turnout and by the historic significance
of this enormous repositioning project, the largest of its kind ever in Westchester,"
commented David Sims, Reckson Senior Vice President and Managing Director, Westchester/Connecticut.
"The design solutions put forth by Reckson are very similar to the approach
and dramatic results achieved at 360 Hamilton Avenue, White Plains. There, Reckson
turned a distressed building into the finest Class A trophy property in the
County. We are pleased that the brokerage community was so impressed by the
repositioning plan we presented this evening. Certainly, the scope and quality
of our improvements received a great endorsement from the real estate professionals,
many of whom remember the prestigious position this property once enjoyed in
the marketplace."
"Tonight marks the kickoff of a fourteen month repositioning plan. Based
upon what I am hearing from those in attendance our plans to dramatically transform
this property both in physical improvements and service level provided are right
on the money," stated Salvatore Campofranco, EVP and Chief Operating Officer.
Campofranco continued, "The repositioning will include the installation
of dramatic finishes in the form of fine mill work, marble and granite floors
as well as beautiful water features in the lobbies of the properties, complete
upgrade of building systems and all amenities, beginning with the recent installation
of our new conference center to be followed by an enhanced redesign of the many
cafeterias and installation of new technologies such as our state of the art
'Angus' tenant services program. In addition, we will completely redesign the
landscape features including visitor drop off and tenant entrances to create
outdoor people spaces and achieve much greater prominence and view lines for
the buildings. A new concierge service is being implemented to allow the tenant
base to have efficient access to the many amenities such as fitness rooms, conference
centers, child care, barber shop, etc. Concierge service will arrange for hotel,
dining reservations and car service pick up. These enhancements are part of
our focus to provide our valued tenants with the most attentive service possible
at the finest office park in Westchester."
RECKSON LAUNCHES PLATINUM REWARDS AND
"SMALL SPACE LEASING" PROGRAM
At the event, Reckson unveiled Platinum Rewards, a leasing incentive program
which includes for the first time ever the giveaway of a Platinum Mercedes Benz
to the broker who achieves the highest number of deals done at the property,
on a square footage basis. In order to qualify a broker must lease in aggregate
a minimum of 30,000 rentable square feet within the next twelve months.
In addition, Reckson introduced its "Small Space Leasing" program,
which includes an abbreviated lease form, model office units with standardized
finishes, and expedited commission payments for units under 5,000 rentable square
feet.
Reflecting on the vast improvements underway at Reckson Platinum Mile, Sims
concluded: "When its transformation is complete, Reckson Platinum Mile
will surpass all expectations to become the ultimate corporate environment."
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Reckson 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 properties located in New York
City and the surrounding Tri-State area markets. 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, and wholly owns, has substantial interests in,
or has under contract, a total of 102 properties comprised of approximately
20.2 million square feet. For additional information on Reckson, please visit
the Company's web site at www.reckson.com.
Certain matters discussed herein 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; credit of our tenants; changes in the supply of and
demand for office and industrial properties in the New York Tri-State area;
changes in interest rate levels; 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 and insurance costs; repayment
of debt owed to the Company by third parties (including FrontLine Capital Group);
risks associated with joint ventures; 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:
David Sims, SVP
Managing Director,
Westchester/Connecticut Division
John Barnes, SVP, Director,
Westchester/Connecticut Division
(914) 750-7200
Rubenstein Communications
Margot Olcay
(212) 843 8284
