Reckson completes round two of $563m sale deal.Reckson Associates Realty Corp. announced that the company has closed tranche II of the property sale transaction with Reckson New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Property Trust, a Reckson-sponsored Australian property trust. In the tranche II closing, Reckson sold three suburban core plus office properties containing 760,986 square feet for approximately $84.6 million, including the assignment of approximately $20.1 million of debt. Approximately $25.1 million of the proceeds are being held by a qualified intermediary The Qualified Intermediary (also known as an Accommodator) should be a corporation that is in the full-time business of facilitating 1031 exchanges. The role of a QI is similar to, but not identical to, the role of an escrow company. in anticipation of the acquisition of a replacement property, thereby allowing Reckson to defer the gain on some of the property sales under Section 1031 of the Internal Revenue Code The Internal Revenue Code is the body of law that codifies all federal tax laws, including income, estate, gift, excise, alcohol, tobacco, and employment taxes. These laws constitute title 26 of the U.S. Code (26 U.S.C.A. § 1 et seq. . The three properties sold in tranche II were 6800 and 6900 Jericho Turnpike turnpike, road paid for partly or wholly by fees collected from travelers at tollgates. It derives its name from the hinged bar that prevented passage through such a gate until the toll was paid. See also road. , a 207,583 s/f and a 100,989 s/f building, respectively, located on Long Island, and 710 Bridgeport Avenue, a 452,414 s/f building, located in Fairfield County, Connecticut Fairfield County is located in the southwestern corner of the U.S. state of Connecticut. Its population according to the 2000 census was 882,567, but a 2006 survey put the population at 905,000. It is the most populous county in the State of Connecticut. . The tranche II closing is part of a broader transaction in which Reckson has agreed to sell a portfolio of 25 suburban core plus office properties located in the New York Tri-State area There are a number of places in the United States known as tri-state areas where three states or holdings meet at one point (a tripoint), or in proximity to each other. The two most well-known are for the New York and Chicago metropolitan areas. for a total sales price of $563 million. Reckson will retain a 25% indirect interest in the joint venture that is purchasing these properties. In September 2005, Reckson closed on tranche I of the transaction when the Company sold 17 core plus office properties for approximately $367 million. The final tranche of the transaction is scheduled to be completed in October 2006 when the company will sell the remaining five properties. The Trust is managed by RAML, an Australian licensed responsible entity which is wholly owned by Reckson Operating Partnership, L.P., an affiliate of Reckson. Other affiliates of Reckson serve as property manager, leasing agent, asset manager, and construction manager and provide other services to the properties in the Trust portfolio. Reckson's core growth strategy is focused on the markets surrounding and including New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. . |
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