MELVILLE, N.Y.--(BUSINESS WIRE)--July 14, 2004--
Markets and Activity Strong with Reckson Leasing Approximately
1.5 Million Square Feet of Office Space Year to Date
Reckson Associates Realty Corp. (NYSE: RA) today announced that
the Company plans to begin ground-up development of a 277,000 square
foot Class A office building, for a total anticipated investment
estimated at approximately $60 million, completing the final phase of
Reckson Executive Park located in Melville, Long Island. The new
building, 68 South Service Road, will be situated directly across from
the Company's recently constructed and leased 58 South Service Road,
completing the three building 681,000 square foot Class A office park.
Reckson's decision to begin the construction of 68 South Service
Road reflects the Company's confidence in the Long Island economy and
commercial real estate market. The improving Long Island office
fundamentals are reflected in the increasing demand for space that
caters to companies requiring newer state-of-the-art buildings to
accommodate today's operational needs. This new premier office
building will follow Reckson's leasing success at 58 South Service
Road, which has set a new standard for Class A office space in the
Melville marketplace, and is currently approximately 91% leased to a
prestigious roster of tenants including Smith Barney Citigroup, Zurich
American Insurance Company, OSI Pharmaceuticals and Signature Bank,
among others.
Scott Rechler, Reckson's President and Chief Executive Officer,
stated, "Commencement of this ground-up development project is a
barometer of the strength of the market recovery in the New York
Tri-State area and demonstrates our particular confidence in the Long
Island office market." Mr. Rechler continued, "During the first half
of the year we experienced substantial leasing momentum, achieving a
record amount of activity throughout our office portfolio totaling
approximately 1.5 million square feet. Our Long Island office
portfolio occupancy has increased to approximately 96%. We see this
development as an opportunity to continue to capitalize on the strong
recovery of our markets."
Strategically located at the gateway of Nassau and Suffolk
Counties between Exits 48 and 49 on the Long Island Expressway,
Reckson Executive Park offers exceptional visibility as well as
immediate access to all major roadways, while surrounded by
approximately 100 acres of passive parkland in a campus-style
environment. The dramatic four-story granite and glass facade building
will feature hi-tech conference and training rooms, concierge service,
cafe, fitness center and on-site wireless networking along with an
indoor executive parking garage, providing the highest quality
services, amenities and solutions which continue to make Reckson the
"Landlord of Choice" in the New York Tri-State area.
"Following the success of 58 South Service Road, we are excited to
bring on-line the next building of our premier development project
which is anticipated to be completed in the fourth quarter of 2005,"
commented Ken Bauer, Senior Vice President and Co-Director of the Long
Island Division. Mr. Bauer continued, "This development reinforces our
commitment to maintaining our leadership position in the Long Island
office market."
This development continues Reckson's long tradition as a fully
integrated real estate operating company with unique in-house
capabilities in leasing, property management, design and development,
architecture, construction, asset management and finance, providing
the Company with a distinct competitive advantage. Through the
integration of Reckson's Design and Development, Central Architecture
and Construction Groups the Company is prepared for all stages of new
development and redevelopment projects. The collaborative efforts of
the Company's in-house services on this project will help to ensure
long-term product marketability and success, as well as a Reckson
product that continues to set the benchmark in the Company's markets.
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 83 properties
comprised of approximately 15.3 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
(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.
Scott Rechler, CEO
Michael Maturo, CFO
Ken Bauer, SVP, Co-Director LI
(631) 694-6900 (Phone)
(631) 622-6790 (Facsimile)
or
Beckerman Public Relations
Anna Ciringione (Media)
(908) 781-6420 (Phone)
SOURCE: Reckson Associates Realty Corp.
