The company reported office occupancy at Sept. 30, 2005 of 94.1%, compared to 93.7% at June 30 and 93.9% at Sept. 30, 2004. In Midtown and Long Island, Rechler pointed out, firms have "focused on meeting their space need rather that on what they're going to have to pay for it." He added that the firm is seeing rent momentum in both sectors.

During the quarter, the firm inked a deal to sell its lone Lower Manhattan asset, 100 Wall St. as part of its capital recycling program. The firm sold the 462,000-sf office building for approximately $134 million, or $290 per sf. Through it's recycling effort this year, the firm has purchased nearly $1 billion of asset, while selling approximately $900 million of product.

The firm also entered into a contract for the recapitalization of One Court Square in Long Island City, NY. Reckson acquired the building in Ma for a total investment of $471 million. In June, Reckson refinanced its acquisition bridge facility with a $315 million, 10-year, interest-only mortgage. In October, the firm signed a contract to sell a 65% to 70% joint venture interest to a groupof institutional investors led by JPMorgan Asset Management. It should close in the fourth quarter. Rechler said he views the Long Island City area to be to Midtown/Grand Central, what Jersey City and Downtown Brooklyn are to Lower Manhattan.

On Long Island, the firm purchased EAB Plaza, now known as Reckson Plaza, in Uniondale and entered into a joint venture agreement with Charles Wang, owner of the New York Islanders hockey franchise to potentially develop more than five million sf of office, residential, retail and hotel space in the Mitchel Field, Long Island submarket in and around Nassau Veterans Memorial Coliseum. The joint venture is currently participating in the Nassau County request for proposal process. Rechler anticipates it will take two to four years to go through that process.

The company closed the first tranche of a public offering in Australia of approximately $202 million of units in Reckson New York Property Trust, a newly formed, Reckson-sponsored property trust trading on the Australian Stock Exchange properties. The transaction has been structured to be completed in three tranches.

The REIT reported diluted funds from operations of $51.7 million for the third quarter, representing a per share increase of approximately 9% over diluted FFO of $44.9 million last year. This is adjusted for the $6.7-million accounting charge recognized in connection with the redemption of Reckson's 7 5/8% Series A Preferred stock.

Instant Insights /

Reckson Sees Opportunities on LI, in Midtown and LIC

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