Transaction Furthers SL Green and Reckson's Respective Growth Strategies
                 Within the New York City Real Estate Market

    SL Green to Own a Total of Nearly 8.0 Million Square Feet of Manhattan
                                 Office Space

    NEW YORK, March 17 /PRNewswire/ -- SL Green Realty Corp. (NYSE: SLG) ("SL
Green") announced today that it has entered an agreement with Reckson
Associates Realty Corp. (NYSE: RA) ("Reckson") whereby Reckson consents to the
purchase of the fee interest in four New York City office properties totaling
675,000 square feet, for $84.5 million in cash ($125/square feet).  The
properties to be acquired by SL Green are owned by Tower Realty Trust, Inc.
("Tower") and are among those included in the pending merger agreement among
Reckson, Metropolitan Partners LLC ("Metropolitan") and Tower.  The properties
include an entire blockfront in midtown Manhattan between 40th and 41st
Streets along Madison Avenue (286, 290 and 292 Madison Avenue), and 90 Broad
Street in downtown Manhattan.
    The transaction is expected to close immediately prior to the closing of
the merger between Metropolitan, a subsidiary of  Reckson, and Tower, sometime
in the second quarter of 1999.  The transaction will increase SL Green's
ownership of office buildings in Manhattan to nearly 8.0 million square feet.
    SL Green had been evaluating the acquisition of selected assets of Tower
since last summer.  Prudential Securities and Lehman Brothers have served as
SL Green's advisors on various transaction structures for these assets.
Financing of the final transaction was arranged for SL Green through
Prudential Securities and Deutsche Bank Securities.

    About the Properties
    The Madison Avenue properties are in the heart of the resurgent Grand
Central District, a central transportation hub which is undergoing extensive
renovations totaling over $100.0 million, including the development of new
retail stores, restaurants and attractive public spaces designed to make Grand
Central Terminal a destination, in addition to a transportation center.  The
buildings range in size from 6 to 26 stories and encompass a total of about
336,000 square feet with floorplates ranging between 5,000 and 10,000 square
feet.  The breakdown, including occupancy and major tenants, is as follows:

    Property          Square Feet        Occupancy      Major Tenants

    286 Madison       112,000            98.8%          Airline Stationery
                                                         Co.(8,084 sf),
                                                        Life Insurance Co. of
                                                         Boston & NY
                                                         (5,058 sf)
    290 Madison       36,800             85.6%          Career Blazers
                                                         Personnel Services,
                                                         Inc.(16,000 sf),
                                                         Madison Avenue
                                                        Generation, Inc.
                                                         (11,000 sf)
    292 Madison       187,000            97.0%          TBWA Advertising
                                                         (70,800 sf),
                                                        Heller, Horowitz &
                                                         Feit, P.C.
                                                         (11,000 sf)
    Total/Avg.        335,800            96.4%

    The 25-story, 339,000 square foot property at 90 Broad Street, is
currently 81.8% leased, with major tenants including MTB Bank (46,500 square
feet), Walsh, Manning Securities (26,000 square feet) and Deforester & Duer
(21,500 square feet).  Floorplates range from 17,500 square feet at the base
of the building, to 7,000 square feet at the top.  The property is located
directly across from 85 Broad Street  --  the headquarters of Goldman Sachs.
The property also includes an adjacent parking lot which is a separate tax lot
and represents immediate cash flow from parking operations with future
development potential of approximately 100,000 square feet.
    Commenting on the transaction, Marc Holliday, Chief Investment Officer for
SL Green noted, "This acquisition is right in line with the Company's
financial objectives -- providing us with the right balance of cash flow
stability and upside potential.  For example, the Madison Avenue properties
are 96% leased and are expected to provide SL Green with a stable source of
in-place net operating income in a submarket experiencing strong leasing
demand and little vacancy.  At the 90 Broad Street property, there is
substantial upside, evidenced by the leasing potential of 62,000 square feet
currently vacant, and another 36,000 square feet expiring over the next two
years at average in-place rents that are 10% below the prevailing market."
    Mr. Holliday continued, "The Company has passed on many opportunities in
the downtown market, however, 90 Broad Street represents a desirable
combination of good quality real estate, accretive going-in returns and growth
opportunity.  We expect this acquisition to be accretive as of the date of
acquisition, with a GAAP NOI yield within the range of SL Green's targets on a
going-in basis.
    Stephen L. Green, Chairman and Chief Executive Officer of SL Green noted,
"We are very pleased to announce this transaction and are excited to be
working with Reckson to purchase the Class B portion of Tower's New York City
portfolio.  We believe as both companies pursue their long-term strategies, we
will have opportunities to work together again in the future."
    Mr. Green continued, "The purchase of these properties is consistent with
our stated strategy of acquiring, owning, leasing and operating Class B office
buildings in New York City's high-growth submarkets.  Of note, the Madison
Avenue blockfront properties, which are right next door to a prime development
site of approximately 600,000 square feet of Class A space (one of only six
new development sites in Manhattan), significantly strengthens our existing
foothold in the Grand Central District.  Also, our purchase of 90 Broad Street
is significant in that this property falls within our selective downtown
strategy of pursuing properties with market rents under $25/square foot at a
cost basis that we believe is attractive in light of today's market
conditions."
    Mr. Green explained that Class B office properties describe those which
are typically more than 25 years old but which are in good physical condition,
enjoy widespread acceptance by high-quality tenants and are situated in
desirable locations in Manhattan.  Class B office properties can be
distinguished from Class A properties in that Class A properties are generally
newer properties with higher finishes and obtain the highest rental rates
within their markets.
    Subsequent to the acquisition of these four properties, SL Green's
portfolio will consist of 23 properties, encompassing approximately
8.0 million rentable square feet.
    SL Green Corp. is a fully integrated, self-administered and self-managed
real estate investment trust ("REIT") which primarily owns, manages, leases,
acquires and repositions Class B office properties in Manhattan.
    This press release contains forward-looking information based upon the
Company's current best judgment and expectations.  Actual results could vary
from those presented herein.  The risks and uncertainties associated with the
forward-looking information include the strength of the commercial office real
estate market, competitive market conditions, general economic growth,
interest rates and capital market conditions.  For further information, please
refer to the Company's filings with the Securities and Exchange Commission.

Link to this page: