The 91% leased property, which will be renamed Reckson Office Center, was acquired with cash and the issuance of common units of limited partnership interest valued at $28.70 per unit, according to Scott Rechler, the Melville, NY-based company's president and CEO. Reckson expects to generate an initial net operating income yield of about 9.25% from the building, and anticipates the yield to increase to 10.5% over the next few years.

The acquisition follows the company's recent pick-up of 3 Giralda Farms, a 141,000-sf class A building within the Giralda Farms Corporate Campus in nearby Madison. Both properties are located near the intersection of I-287 and Route 24 in Morris County.

"These transactions are consistent with our strategic plan to focus on class A office product in the best submarkets in the New York tri-state region," Rechler says. "It also demonstrates our ability to source investment opportunities and utilize creative structures to execute transactions which achieve above-market returns.

The latest acquisition boosts Reckson's New Jersey holdings to more than 2.6 million sf. The REIT maintains a Garden State office in Short Hills, headed by Todd Rechler, corporate senior vice president and managing director.