(MELVILLE, NEW YORK, May 8, 2000) - Reckson Associates Realty Corp. (NYSE:
RA) announced
today that the Company has closed the final stages of the sale of
Reckson Morris Industrial ("RMI") and other New Jersey
industrial assets to Keystone Property Trust ("KTR"),
formerly known as American Real Estate Investment Corporation, completing
the aggregate $310 million sale transaction.

The
final stages of the transaction included six "big box"
industrial buildings, totaling 2.1 million square feet, to Keystone
Property Trust. The proceeds received from the completion of these
final stages of the transaction total approximately $98 million.

The
$310 million transaction with Keystone Property Trust and Matrix
Development Group included a total of 28 "big box" industrial
assets comprising 6.1 million square feet, 276 acres of land and
options to acquire 469 acres of land, for an aggregate total sale
price of $310 million, resulting in a 16% unleveraged internal rate
of return on Reckson's investment.

"The
proceeds from this sale will allow us to continue to: (i) take advantage
of the value-added opportunities which exist in our markets through
the acceleration of our $1.1 billion value creation pipeline which
we anticipate will generate an average NOI return of 12% upon stabilization,
and (ii) opportunistically pursue our stock repurchase program,"
commented Scott Rechler, Reckson's Co-Chief Executive Officer
and President. Mr. Rechler continued, "We are continuing to
experience a period of exceptionally strong market conditions throughout
the New York Tri-State area. This disposition of our big box'
industrial business will allow us to further focus our resources
on unleashing the intrinsic value in our multi-tenant office and
industrial portfolio and increase our per share net asset value."
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Reckson
Associates Realty Corp. is a self-administered and self-managed
real estate investment trust (REIT) specializing in the acquisition,
leasing, financing, management and development of office and industrial
properties.

Reckson's
core growth strategy is focused on the markets surrounding and including
New York City. Since the completion of its initial public offering
in May 1995, Reckson has acquired, contracted to acquire or developed
approximately $2.1 billion of real estate assets comprising approximately
15.8 million square feet of space.

Reckson
is one of the largest publicly traded owners and managers of Class
A office and industrial properties in the New York Tri-State area,
with 185 properties comprised of approximately 20.3 million square
feet either owned and controlled, directly or indirectly, or under
contract. For additional information on Reckson Associates Realty
Corp. please visit the Company's web site at www.reckson.com.

This
information contains forward-looking information that is subject
to certain risks, trends and uncertainties that could cause actual
results to differ materially from those projected. Among those risks,
trends and uncertainties are the general economic climate; the supply
of and demand for office and industrial properties in the New York
Tri-State area; interest rate levels; continued strength of rental
rate levels in the company's markets; the availability of financing;
and other risks associated with the development and acquisition
of properties, including risks that development may not be completed
on schedule, that the tenants will not take occupancy or pay rent,
or that development or operating costs may be greater than anticipated.
For further information on factors that could impact Reckson, reference
is made to Reckson's filings with the Securities and Exchange
Commission.

Contact:

Scott Rechler, President and Co-CEO
Michael Maturo, C.F.O