MELVILLE, N.Y.--(BUSINESS WIRE)--Aug. 12, 2003--Reckson Associates Realty Corp. (NYSE: RA) has announced the acquisition of 1055 Washington Boulevard, Stamford, Connecticut, a 181,800 square foot, 10-story, Class A office building. This acquisition expands the office portfolio of Reckson's Westchester/Connecticut Division to over 4.3 million square feet.

The property was acquired with $21.6 million in cash and the issuance of 465,845 Class C common units of limited partnership interest, valued at $24.00 per unit, representing an approximate 14% premium to yesterday's closing price of Reckson's Class A common stock. The Class C common unitholders will receive an annual distribution of $1.87 per unit, which amount will increase or decrease pro rata based upon changes in the dividend paid on Reckson's Class A common stock.

Commenting on the transaction, Scott Rechler, Reckson's Co-Chief Executive Officer, said, "This acquisition demonstrates our ability to work with sellers to formulate creative structures to effectively execute transactions. Further, it exemplifies our capability to identify and opportunistically acquire properties going through a state of transition where we may apply our expertise to create value and enhance our returns."

Reckson expects to generate an initial net operating income ("NOI") yield of 7.2% from the property which is currently 80% leased. The yield on this value-added opportunity is anticipated to increase to approximately 9.5% during 2004 as the asset is stabilized.

"The acquisition of this high-quality, well-located property enhances our strategic advantage in the Stamford CBD market by increasing our presence and ability to offer tenants a greater selection of high-quality office space in the marketplace. The addition of this property complements our Landmark Square and Stamford Towers properties and further indicates the confidence that we have in the Stamford market. We are proud to add the quality tenants at 1055 Washington Boulevard to our roster and look forward to providing these tenants with the outstanding services for which Reckson is well-known," stated Salvatore Campofranco, Managing Director of Reckson's Westchester/Connecticut Division.

Cushman & Wakefield represented the seller in this transaction.

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 growth strategy is focused on the Tri-State area 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 182 properties comprised of approximately 20.7 million square feet either owned or controlled. 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 and industrial/R&D 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, 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, Co-CEO
Michael Maturo, CFO
Salvatore Campofranco, Managing Director,
Westchester/Connecticut Division
(631) 694-6900 (Phone)
(631) 622-6790 (Facsimile)

SOURCE: Reckson Associates Realty Corp.