RFR Holding Acquires 17 State Street for $120 Million

December 1999

NEW YORK, NY -- RFR Holding LLC, currently one of Midtown's most active commercial real estate investors, announced today that it has completed the purchase of the 42-story Class A office tower at 17 State Street in Lower Manhattan. RFR bought the 540,000 square foot building from Savannah Teachers Properties, Inc. for approximately $120 million.

"We are excited to add this Class A Downtown property to our growing portfolio of Manhattan office buildings," stated Aby Rosen, Principal of RFR. "For years we have concentrated on the Midtown market because we believed it offered the best opportunities, but Downtown is a market we can no longer ignore. Lower Manhattan has experienced tremendous leasing activity during the past two years as tenants recognize that this area continues to be the financial capital of the world. We are confident that this demand for quality space will remain strong, allowing us to bring the below-market leases at 17 State Street in line with current market rents as they roll-over in the coming months."

Designed by Emery Roth & Sons and constructed in 1988, 17 State Street is modern in design and features a stunning curvilinear glass facade with floor-to-ceiling windows. The property is currently more than 95% occupied with Shareholder Communications, AXA Reinsurance Company and Duff & Phelps Credit Rating Co. being the three largest tenants in the building.

"17 State Street is a premier property that has been well-maintained and well-positioned, but we believe we can create even greater value for the property by making some minor mechanical upgrades and reshuffling some current tenants into more efficient space," concluded Rosen.

Located at the tip of Manhattan, close to Wall Street, the World Trade Center and the World Financial Center, 17 State Street is situated in the midst of the financial and insurance communities and is immediately accessible from several of the City's bus and subway lines as well as the Staten Island Ferry. The building offers spectacular views of the New York Harbor and Battery Park.

17 State Street will be managed by RFR Realty LLC, a full-service leasing and management company. RFR Realty's President, Mark Granata, will supervise the management of the building while Richard Farley, Senior Vice President/Director of Leasing, will handle the leasing of the property.

RFR Holding LLC, which maintains a commercial portfolio of more than four million square feet in 16 Manhattan buildings, has been involved in the acquisition, development and management of office, retail and residential projects throughout the United States since 1991. In 1999, the firm purchased several office properties including the Lever House at 390 Park Avenue, 757 Third Avenue, 521 Fifth Avenue and 104 West 40th Street.