Reckson closes $24M deal on Giralda Farms.

Reckson Associates Realty Corp. announced that the company has closed on the acquisition of a 150,000 s/f office building located at One Giralda Farms in Madison, N.J., for approximately $24.3 million.

Reckson has acquired One Giralda Farms from Schering Plough, who developed the property as its corporate headquarters and will lease the entire property from Reckson under a short-term lease agreement. Reckson plans to subsequently complete a $10 million repositioning of the building.

The One Giralda Farms acquisition follows Reckson's recent acquisition of Three Giralda Farms, a 141,000 s/f, class A office building acquired for a total anticipated investment of approximately $31 million. Within two months after acquiring Three Giralda Farms, the company successfully signed a long-term lease with Daiichi Pharmaceutical Corporation to occupy the entire building.

Both One and Three Giralda Farms are part of the highly desirable Giralda Farms Corporate Campus, a 1.25 million s/f complex of class A office buildings located in Madison/ Chatham townships, N.J.

Reckson also owns 154 acres of land at the Giralda Farms Corporate Campus with development rights for approximately 1.1 million s/f, with 436,000 s/f already fully designed and approved for construction.

Scott Rechler, Reckson's president and chief executive officer, stated, "We are proud to announce yet another important acquisition in our New Jersey division.

"One Giralda Farms reflects our focus on acquiring core class A office properties that leverage our market franchise power. This acquisition demonstrates our team's ability to source off-market opportunities that offer excellent market fundamentals and long-term growth potential."

Reckson is purchasing One Giralda Farms at an approximate 25% discount to replacement cost on a fully invested basis and expects to generate stabilized net operating income and GAAP NOI yields of approximately 9.0%.

One Giralda Farms is a four story, class A office building, situated within a pristine corporate park. The property contains high-grade finishes and amenities, including a cafe, a corporate dining facility, conference facilities and below grade parking.

The building is strategically located minutes away from the express trains to New York City and approximately 25 miles from both the Holland and Lincoln Tunnels.

Todd Rechler, corporate senior vice president of Reckson, said, "We are pleased to have acquired One Giralda on the heels of our recent success with the acquisition and lease-up of Three Giralda Farms ... Both of these assets offer outstanding amenities, state-of-the-art infrastructures and premier locations within one of New Jersey's most desirable corporate parks, giving us the opportunity to offer tenants a premier asset in [this] market."