$321M Sale of 1185 Ave. of the Americas Closes

NEW YORK CITY-Increasing its New York City portfolio to more than 4.6 million sf, Reckson Associates Realty Corp. completed its $321-million purchase of 1185 Avenue of the Americas. The 42-story, 1.1-million-sf class A office tower in the Rockefeller Center area is home to tenants such as WestPoint Stevens, Amerada Hess, Goldstein Golub & Kessler/American Express, Ralph Lauren and Aspen Publishers. Last year, law firm King & Spalding LLP signed a lease for 26,500 sf on the entire 32nd floor. The international law firm is now the anchor tenant occupying 132,500 sf on floors 30 through 35.

Scott Rechler, CEO and president of the Melville, NY-based REIT says he saw the asset’s potential as it “offers the potential for significant upside with 40% of the leases expiring through 2011 at rents that we believe to be approximately 58% below market.” Rechler points out that 1185 is going through a state of transition with one of its largest tenants in bankruptcy, the rent on the ground lease scheduled to be re-set in 2005 and the building requiring certain infrastructure upgrades.