Reckson to acquire Halpern properties.

Reckson Associates Realty Corp. has announced that it has entered into a contract to acquire interests in up to eight Class A suburban office buildings encompassing approximately 935,000 square feet located in Westchester County, for a maximum purchase of approximately $83 million. The properties are being acquired from affiliates of Halpern Enterprises. Reckson will also acquire certain management and construction business assets from Halpern which currently manages approximately 800,000 square feet of office space for third-party clients.

In conjunction with the transaction, Reckson will enter into a three-year employment agreement with Jon Halpern, president of Halpern, who will become an Executive Vice President of Reckson and the President of its Westchester Division. In addition, Reckson will retain Halpern's operating infrastructure and personnel. Consummation of the entire transaction is currently scheduled for the first quarter of 1996 and is subject to Reckson's completion of its normal due diligence function.

"We are very excited about the opportunities afforded to Reckson by this acquisition" said Donald Rechler, chairman of the Board and of Reckson. Halpern is one of the premier full service real estate companies in Westchester County. By acquiring the Halpern office building portfolio and the related management, leasing and construction expertise of the Halpern organization, Reckson will establish a market presence in Westchester, providing us with value-added growth opportunities similar to those we enjoy on Long Island."

"After evaluating the tree prime Tri-state suburban markets, we determined that Westchester was the most opportune market of us to enter at this time," Rechler said. "The Westchester market is very similar to the Long Island market in that Westchester is an in-fill market with minimal available land and has an exceptionally productive work force and affluent population. In addition, Westchester is located in close proximity to Long Island and the Halpern properties are within a 45-minute drive from Reckson's headquarters in Melville."

According to Scott Rechler, COO and an executive vice president of Reckson, the anticipated yield on total investment for the Halpern properties exceeds 11 percent. "We currently expect that the purchase price for the Halpern acquisition will be funded by a combination of borrowings under Reckon's credit facility, the assumption of existing debt, new long-term debt and partnership units of Reckon's operating partnerships," said Rechler.

Reckson Associates Realty Corp. is a self-administered and self-managed real estate investment trust (REIT). Reckson is the largest owner and manager of Class A office and industrial properties on Long Island with more than 5.3 million square feet of space.

The Halpern buildings involved in the transaction are as follows:

In Tarrytown Corporate Center, Town of Greenburgh: 505 White Plains Road, (26,500 square feet); 560 White Plains Road, (126,470 square feet); 580 White Plains Road, (170,330 square feet); and 520 White Plains Road, (171,000 square feet).

In White Plains: 235 Main Street, (83,300 square feet) and 245 Main STreet, (76,000 square feet).

In Ossining: 2 Church Street, (24,000 square feet).

The buildings are owned by Halpern and other family members, including the Lesser and Stillman families.

Under the agreement, Reckson will also have the potential to acquire an interest in 660 White Plains Road, Tarrytown. Halpern was advised in this transaction by Salomon Brothers and by Austin Corporate Properties.