March 23, 2007
Treeline Expanding in Garden City
In a further consolidation of their strength in the Garden City office submarket,
TheTreeline Companies and a partner, Manhattan-based First Point Partners,
have paid $98.7 million for a 520,000 square foot office complex on
Franklin Avenue near Old Country Road, the companies announced Thursday.
"We have a lot of confidence in this marketplace, and this is really going to
be a trophy property for us," said Treeline President Frances Schor. She said
Treeline plans to invest several million dollars in capital improvements to
elevators, public space, landscaping and parking structures for all four buildings
in Franklin Avenue Plaza.
Treeline's Garden City portfolio now totals about 1.65 million square feet, up
700,000 square feet from late last year, before the company bought another
prime property at 990 Stewart Avenue.
The new properties place Treeline within striking distance of RexCorp, the
submarket's largest landlord with about 2 million square feet, and far above
the third-largest portfolio, according to Newmark Knight Frank office broker
and managing director Brian D. Lee. Lee said the complex, which houses
major offices for Merrill Lynch, Wachovia Securities, Morgan Stanely and others
should bring strong returns to an owner-manager so familiar with the territory.
"It's a unique product on Franklin Avenue" because of its amenities and
proximity to the courthouses, Lee said, "and I believe that if Treeline invests the
capital into upgrading it, they should achieve a nice return on their investment."
Jeff Dunne, the CB Richard Ellis broker who represented Treeline and First Point
on the deal, said he expects the new owners will invest between $7 and $9 million
improving the property, though much of that will go to necessary work on the
parking structure.
Schor said the Garden City property values are largely independent of long-standing
plans to redevelop the Nassau Hub area nearby.
"It's not really a factor," she said. "We have confidence in the stability of the area
with or without the success of that project."
TheTreeline Companies and a partner, Manhattan-based First Point Partners,
have paid $98.7 million for a 520,000 square foot office complex on
Franklin Avenue near Old Country Road, the companies announced Thursday.
"We have a lot of confidence in this marketplace, and this is really going to
be a trophy property for us," said Treeline President Frances Schor. She said
Treeline plans to invest several million dollars in capital improvements to
elevators, public space, landscaping and parking structures for all four buildings
in Franklin Avenue Plaza.
Treeline's Garden City portfolio now totals about 1.65 million square feet, up
700,000 square feet from late last year, before the company bought another
prime property at 990 Stewart Avenue.
The new properties place Treeline within striking distance of RexCorp, the
submarket's largest landlord with about 2 million square feet, and far above
the third-largest portfolio, according to Newmark Knight Frank office broker
and managing director Brian D. Lee. Lee said the complex, which houses
major offices for Merrill Lynch, Wachovia Securities, Morgan Stanely and others
should bring strong returns to an owner-manager so familiar with the territory.
"It's a unique product on Franklin Avenue" because of its amenities and
proximity to the courthouses, Lee said, "and I believe that if Treeline invests the
capital into upgrading it, they should achieve a nice return on their investment."
Jeff Dunne, the CB Richard Ellis broker who represented Treeline and First Point
on the deal, said he expects the new owners will invest between $7 and $9 million
improving the property, though much of that will go to necessary work on the
parking structure.
Schor said the Garden City property values are largely independent of long-standing
plans to redevelop the Nassau Hub area nearby.
"It's not really a factor," she said. "We have confidence in the stability of the area
with or without the success of that project."