By Matthew Monks
Long Island-based Reckson Associates Realty Corp. will acquire the 50-story skyscraper in a $470 million deal expected to close this month, officials said. Citibank will stay in the building under a 15-year lease. The sale gets the 1.4 million-square-foot structure “off our balance sheet. It frees up some capital,” a Citibank spokeswoman said. The decision is part of a company strategy in which Citibank has gone from owning 70 percent of its properties to just 30 percent. The financial services giant has entered into similar deals with property trusts at two locations in Manhattan: its headquarters at 399 Park Avenue and Citigroup Center at 599 Lexington Ave. The tower at Court Square One in Long Island City was built in 1989 for $250 million and houses 4,800 employees. Citibank, the city's largest private employer, will expand in the neighborhood later this year with the construction of a $200 million, 475,000-square-foot tower next door that will have space for 1,500 workers. The company will also improve connections between the G and No. 7 subway lines at Court Square with an escalator allowing commuters to access the lines underground. Reckson President and CEO Scott Rechler described Long Island City as the last “underdeveloped” market in the city and said it has much promise. Last year 37 blocks were rezoned to spur more housing in the former manufacturing enclave and the neighborhood offers “a lower cost alternative to Midtown,” he said. “It is our intention to capitalize on this acquisition to pursue additional … Opportunities in the Long Island City submarket,” Rechler said. Reckson is a commercial real estate investment trust that controls 90 office buildings in the tri-state area. The Citibank deal will be its first acquisition in Queens. Reach reporter Matthew Monks at news@timesledger.com or 718-229-0300, Ext. 156.
