Rechler announced last month HQ would be pushed forward as anindividual company, standing out of the shadow, so to speak, ofFrontLine. In breaking down FrontLine's ownership of the companyyesterday, Rechler explained control amounted to 59.8% or 8,607,076shares. While FrontLine actually still owns 100% of the company, itis by shifting the way it focuses on control that Rechler hopes tostrengthen HQ's position in the marketplace.

HQ, as of Sept. 30, has $571 million in debt. FrontLine had $157million in debt for the same period, $106 million of which islisted as debt to parent company, Reckson Strategic VenturePartners. It is in HQ's $35 million in EBITDA in the third quarterthat Rechler wished to focus the most attention during the call.There was approximately $160 million in total revenue and $81million in gross profit.

Rechler and Kushin identified three mega trends: outsourcing,globalization and business use of technology. Its new centerprototype is expected to meet the demands of the market. With40,000 sf with 250 workstations, $2.2 million initial investmentrequired, HQ expects it will break even in eight months with 14months for stabilization. They expect revenues in excess of $4million following the first 14 months and EBITDA yields in excessof 60% from then through year five.