GARDEN CITY, NY-The Treeline Cos. and Boston-based Long Wharf Real Estate Partners have formed a joint venture to refinance and recap Franklin Avenue Plaza. The 520,000-square-foot, four building office complex was acquired by Treeline in 2007 with another JV partner—First Point Partners—for $98.7 million.

First Point has since exited the partnership, Michael Schor, Treeline’s executive VP and counsel tells GlobeSt.com.

The current transaction, which rearranges debt and equity on the complex leaves Treeline as manager of the property, retaining an equity stake. Simon Ziff, Jason Krane and Philip Lisciandra at Ackerman-Ziff work arranged the debt and equity financing, completed through Wells Fargo.

Schor says that the total debt involved was $60 million, but that Treeline and Long Wharf “made a new equity investment in the property in excess of $20 million.” 

When the complex was purchased in 2007, Schor says that it had occupancy issues that a subsequent capital improvement program helped to clear up. “We actually did quite well on the leasing even through the down market, renewing existing tenancy and bringing forward new tenants,” he says. “But what we were able to do through this transaction was restack the debt and equity in a way that was more favorable to the building’s cash flow and to the long-term prospects of the property.”

Additional capital improvements are currently underway. Those multi-million dollar improvements are focused on common areas and improvements to elevators, building system upgrades, modernized amenities and landscaping.

Also underway? Planning for additional acquisitions with Long Wharf, a partnership that Schor says provides significant access to capital. “We are looking to acquire together primarily office assets in Nassau and Suffolk counties with an opportunistic and value –add component,” he says, adding that the JV will target assets that it can turn around and bring up to performing standards. “We’re not necessarily looking for ground-up construction.”

Franklin Avenue Plaza consists of buildings at 1205, 1225, 1305 and 1325 Franklin Ave. in Garden City.