Situated on more than 26 acres of land in Nassau County, EAB Plaza features two 15-story glass towers connected by a three-story lower level, plaza and lobby. Built in 1984, the complex includes an ice skating rink, a 60-foot cascading indoor waterfall and a winter garden. Amenities include on-site day care, its own post office, cafeteria, pharmacy, bank, florist and dentist. It was built in 1984 on Nassau County-owned land for roughly $150 million.

EAB tenants include Citibank, Dreyfus, Washington Mutual, Del Laboratories, GMAC and the law firms of Rivkin, Radler; Ruskin Moscou; and Farrell Fritz. The site is approximately 90% leased. Upon contracting to acquire EAB Plaza, Reckson will immediately take over responsibility for all leasing activity at the property. Cushman & Wakefield had been the exclusive agent under the previous ownership. "We believe we are uniquely equipped to increase EAB Plaza's value by effectively addressing its near-term vacancies, increasing rents and leveraging our scale to generate significant operating expense efficiencies," Rechler notes.

Reckson is purchasing EAB Plaza at an approximate 20% discount to replacement cost. Reckson expects to generate an initial GAAP net operating income yield of approximately 6.5%. In September 2003, Reckson initiated its investment in the site in the form of a mezzanine loan. Subsequently, Reckson increased its investment which now aggregates approximately $27.6 million. This investment is secured by a pledge of an indirect ownership interest of an entity which owns the ground leasehold estate under EAB Plaza. The mezzanine loan will be repaid upon Reckson's closing, which is expected in the fourth quarter.