Scott Rechler said early in the 45-minute long call that much ofthe gains were due to the expiration of many leases in itsportfolio. Reckson was able to exercise its right not to renew andsignificantly increase rent. This fueled some of the company'sthird quarter success.

"The New York market continues to be on fire," said Rechler. "Idon't think anyone could have predicted it." Rechler and Maturosaid most of its leases were renting below market value and theyrealized that if "actually brought to market," this woulddramatically reshape the company's financial situation.

"Today we received the title of 919 Third Ave. after completinga consensual bankruptcy process," Rechler related. He also notedthat the process had begun in May 1999 when "we acquired the firstmortgage for $277½ million." A $250 million loan was secured on theproperty. He called it "such a great success" for Reckson. Rechlernoted that eventually the company might "look for a long-termpartner, maybe some time next year and get some long-termfinancing."