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Reckson Sells LI Industrial Portfolio, Restructures Board

MELVILLE, NY-Reckson is selling its 5.9 million sf, 95-property Long Island industrial portfolio back to the Rechler family for approximately $315.5 million and reorganizing its board of directors.

By Barbara Jarvie | Updated on September 11, 2003

MELVILLE, NY-Focusing its core business on class A office properties, Reckson Associates Realty Corp. is selling its 5.9 million sf Long Island industrial portfolio to Rechler Equity Partners, a company formed and directed by Donald, Roger, Mitchell and Gregg Rechler, for approximately $315.5 million in cash and other consideration. Under the terms of the transaction, Reckson is disposing of the 95 properties for approximately $225.1 million in cash and debt assumption and approximately $90.4 million in Reckson Operating Partnership Units. The REIT is also reconstituting its board to consist of six independent directors and two inside directors. Donald Rechler, the current chairman, will become non-executive chairman, while Scott Rechler, current co-CEO, will be serve as CEO and president. Mitchell and Gregg Rechler will serve as advisors to the company for the next two years.

“Our family has dedicated three generations of leadership to Reckson Associates, and we are looking forward to growing Rechler Equity Partners in the private sector,” says Donald Rechler. The acquisition of the portfolio will make Rechler Equity Partners the largest full-service industrial real estate company on Long Island.

Mitchell Rechler tells GlobeSt.com that the new entity will concentrate on Long Island’s high-tech market and will be in the market for properties throughout the tri-state region.”Our intent is to grow the portfolio and redevelop existing properties. We’re still the dominant player in the market with 40 years of relationships with brokers and the real estate community,” he says.

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