Rechler buys LI portfolio of Reckson for $315m.
"This transaction reaffirms our passion for owning, operating and developing real estate, our commitment to business on Long Island, and our desire to support the ongoing success of Reckson Associates Realty Corp.," said Donald Rechler.
Donald Rechler will serve as non-executive Chairman of Reckson Associates Realty Corp. Mitchell and Gregg Rechler will serve as advisors to the company for the next two years.
"Our family has dedicated three generations of leadership to Reckson Associates, and we are look forward to growing Rechler Equity Partners in the private sector as Reckson continues to successfully execute its business plan as the dominant tri-state area REIT," Donald Reehler continued.
The Rechler family will finance the acquisition using a combination of Operating Partnership Units, assumption of existing debt, additional borrowings and cash. After closing, the Rechler family will not own any Operating Partnership Units, but plans to continue to own common stock in Reckson Associates. "We want to pre-empt any potential conflicts that may arise in the future by owning Operating Partnership Units," Donald Rechler said. As a result of the transaction, Mr. Rechler noted, the family will align its interests with those of other Reckson Associates' shareholders.
"We are grateful to the REIT industry--the investors, analysts, bankers and colleagues--who played an important role in the REIT chapter of our careers," Mr. Rechler continued. "Roger and I are at a point in our lives where we want to cut back on the workload associated with running a public company, and we look forward to what the future brings with our new, private sector, endeavor."
The acquisition of the portfolio will make Rechler Equity Partners the largest full-service industrial real estate company on Long Island. Under the direction of Mitchell and Gregg Rechler, the company will offer leasing, property management, asset management, architecture, construction, environmental and finance services all under one roof. Rechler Equity Partners will be fortified by the same real estate practices and professionals that have served the portfolio and its 220 tenants for the last 25 years.
"We are excited to get back to our roots and focus on the business, the communities and the properties we love," said Mitchell Rechler. "We value the opportunity to control the destiny of historic properties conceived and created by our grandfather and fathers, and to seek other acquisitions to build a new chapter in the Rechler family story." The Rechler family's ties to the portfolio go back to 1961, with its purchase of 1400 acres of land in Hanppauge, NY. In 1964, this site became the home of the first planned industrial park in New York State, which remains the second largest in the nation. Ten years later, the Rechler family created Long Island's first high-tech industrial park in Bohemia, NY,. These two sites are included in the portfolio to be acquired by Rechler Equity Partners.
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|Title Annotation:||Rechler Equity Partners, Reckson Associates Realty|
|Publication:||Real Estate Weekly|
|Date:||Sep 17, 2003|
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