REIT Reckson Associates Realty Corp. has bought a 1.6 million sq. ft. office portfolio in Westchester County, N.Y. for $255 million — or $163 per sq. ft. The portfolio, which was sold by the GM Pension Fund, is only 70% occupied.
“Thisrepresents a quintessential value creation opportunity for Reckson,” says Scott Rechler, president and chief executive officer at Reckson. “The extremely well located, institutionally owned portfolio provides us with the opportunity to reposition and redevelop the under performing properties into Class A properties at significant discounts to replacement cost and attractive stabilized net operating income (NOI) yields.”
The 14-building EastRidge portfolio is located at the intersection of I-287 and the Hutchinson River Parkway, two well-traveled roads that meet in the heart of Westchester County.