"One Court Square's attractive price per square foot offers thepotential for material asset value appreciation as the surroundingmarket continues to develop," says Scott Rechler, Reckson'spresident and chief executive officer. "It is our intention tocapitalize on this acquisition to pursue additional value-addedopportunities in the Long Island City submarket." Tod Waterman,executive vice president and managing director of Reckson's NewYork City division, says the acquisition complements its90-property, 17.7-million-sf portfolio.

Citibank plans to develop a 475,000-sf, $200-million officeexpansion adjacent to One Court Square. Reckson officials believethe Long Island City submarket will benefit from the strength ofMidtown Manhattan's class A office market, the continuing trend ofregional decentralization in the New York Tri-State area and thesignificant infrastructure and zoning upgrades planned for thearea.

In 2001, the New York City Department of City Planningidentified central Long Island City as a growth area withsignificant potential for office, retail and residentialdevelopment and the city council adopted the initiative to rezone37 centrally located blocks in the area. The zoning was expected tofacilitate commercial development at increased densities as well asallow new residences to mix with commercial and light industrialbusinesses.