(MELVILLE, NEW YORK, February 9, 2001) - Reckson Associates Realty Corp. (NYSE: RA) has announced
today that the Company has withdrawn its offer to purchase the tract
of land which is part of the Pilgrim State Property from New York
State. After two years of working with the State to finalize an
agreement, Reckson has decided not to dedicate any further resources
to pursue this transaction.

Reckson has repeatedly offered to close on the transaction, but New York State has been unwilling to close unless the Company gives up its claim for damages caused by the State's wrongful termination of Reckson's original winning bid. After prolonged settlement negotiations the parties have been unable to reach a mutual agreement, therefore the Company has decided to withdraw its offer.

"It is unfortunate that we were unable to complete this transaction. We believe it would have been good for all the parties involved and would have benefited the surrounding communities," commented Donald Rechler, Reckson's Chairman and Co-Chief Executive Officer.

Reckson will be taking a one-time non-recurring charge of $3.2 million in the fourth quarter of 2000 in connection with the discontinuation of this development project. The non-recurring loss on this investment will not impact the Company's computation of Funds from Operations for the fourth quarter or year-end.

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 office and industrial properties.

Reckson's core 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 and industrial properties in the New York Tri-State area, with 187 properties comprised of approximately 21 million square feet either owned and controlled, directly or indirectly, or under contract. For additional information on Reckson Associates Realty Corp. please visit the Company's web site at www.reckson.com.

This information contains forward-looking information that is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Among those risks, trends and uncertainties are the general economic climate; the supply of and demand for office and industrial properties in the New York Tri-State area; interest rate levels; continued strength of rental rate levels in the company's markets; the availability of financing; 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 is subject to the reporting requirements of the Securities and Exchange Commission and undertakes no responsibility to update information contained in this press release.

Contact:

Scott Rechler, President and Co-CEO
Michael Maturo, CFO