Reckson Takes Citibank Site for $470M

LONG ISLAND CITY, NY-Reckson Associates Realty Corp. has inked a deal for the 1.4-million-sf tower at One Court Square here for $470 million, inclusive of transfer taxes and other transaction costs. The 50-story class A tower will remain occupied by its seller, Citibank NA, under a 15-year net lease.

“One Court Square’s attractive price per square foot offers the potential for material asset value appreciation as the surrounding market continues to develop,” says Scott Rechler, Reckson’s president and chief executive officer. “It is our intention to capitalize on this acquisition to pursue additional value-added opportunities in the Long Island City submarket.” Tod Waterman, executive vice president and managing director of Reckson’s New York City division, says the acquisition complements its 90-property, 17.7-million-sf portfolio.

Citibank plans to develop a 475,000-sf, $200-million office expansion adjacent to One Court Square. Reckson officials believe the Long Island City submarket will benefit from the strength of Midtown Manhattan’s class A office market, the continuing trend of regional decentralization in the New York Tri-State area and the significant infrastructure and zoning upgrades planned for the area.