(MELVILLE,
NEW YORK October 2, 2000)
- Reckson Associates Realty Corp. (NYSE: RA
announced today that the Company has sold a 49% ownership interest
in eight properties to a leading national retirement fund and financial
services organization for approximately $136 million, while retaining
a 51% majority ownership interest.

The eight suburban, Class A, office properties located throughout the New York Tri-State area total approximately 1.5 million square feet and include:

• 51 JFK Parkway, Short Hills, New Jersey
• 680 Washington Blvd., Stamford, Connecticut (Stamford Towers)
• 750 Washington Blvd., Stamford, Connecticut (Stamford Towers)
• 120 White Plains Road, Tarrytown, New York
• 90 Merrick Avenue, East Meadow, New York
• 400 Garden City Plaza, Garden City, New York
• 275 Broadhollow Road, Melville, New York
• 1305 Walt Whitman Road, Melville, New York

"This transaction is consistent with our self-funding strategy which focuses on monetizing value created and then redeploying this capital into new value creation assets to fuel long-term earnings growth. Although the majority of these properties were strategic acquisitions of stabilized assets, we have been able to increase their NOI by approximately 17% since acquisition, excluding 1305 Walt Whitman Road which was a ground-up redevelopment which we stabilized in less than 12 months after acquisition. We are selling this interest at an 8.7% cap rate on in-place NOI for 2000 and a 9.1% cap rate on 2001 NOI," stated Scott Rechler, Reckson's Co-Chief Executive Officer and President.

"Reckson will continue to manage the day-to-day operations and leasing at all of the properties owned by the joint venture. This will allow us to maintain our franchise value and strategic advantage in the markets in which we operate. Each of these high profile properties will continue to contribute to our dominant presence in the most desirable, premier sub-markets throughout the New York Tri-State area," commented Mitchell Rechler, Reckson's Co-Chief Operating Officer. Mr. Rechler continued, "Reckson will receive market fees for the Company's services in connection with the management and leasing of the properties."

Commenting on the transaction, Michael Maturo, Reckson's Chief Financial Officer, stated, "Our sale of this interest demonstrates our continued ability to creatively access capital. The sale proceeds will be used to paydown the Company's credit facility providing available funds for us to pursue value creation projects while maintaining a conservative financial structure."

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 and managers of Class A office and industrial properties in the New York Tri-State area, with 186 properties comprised of approximately 20.8 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:

Reckson Associates Realty Corp.

225 Broadhollow Road

Melville, New York 11747

(631) 694-6900 (Phone)

(631) 622-6790 (Facsimile)

Scott Rechler, President and Co-CEO

Michael Maturo, CFO