KBS Strategic Opportunity REIT II, a non-traded real estate investment trust based in Newport Beach, California, has announced a joint-venture agreement with Onyx Equities to redevelop 210 West 31st Street across from Madison Square Garden.
The joint-venture was brokered by senior managing directors David Colen and Garett Stoffels at Newmark Grubb Knight Frank. In 2014, Onyx entered into a ground lease for the 8,637 s/f land parcel owned by the Province of St. Mary.
KBS and Onyx now plan to redevelop the property into two stories of dining and retail space, offering a rooftop deck and unobstructed brand exposure to the thousands of daily Penn Station commuters, Madison Square Garden event-goers, tourists and hundreds of thousands of subway riders who work on the nearby blocks.
Demolition of the existing structure is expected to begin in mid-2017 with completion scheduled for mid-2018.
When complete, the property will total approximately 30,000 rentable square feet.
“The influx of industry into the area and the desire for Penn Plaza’s creative and adaptive re-use style office buildings have positioned Penn Plaza and Manhattan’s west side in general at the forefront of New York’s real estate developments,” commented KBS senior vice president Shep Wainwright.
“In recent years, the Penn Plaza submarket has and continues to draw creative industries including technology, advertising, media and information (“TAMI”) companies,” added Jamie Rodgers, executive vice president and head of acquisitions for the KBS Strategic Opportunity REITs.
Stephen Sullivan, executive vice president of Onyx Equities said, “We are excited to partner with KBS and look forward to commencing construction of this project in short order. We believe there will be significant demand from tenants looking to be across from Penn Station and Madison Square Garden and who want to be part of the significant long-term planned improvements to Penn Station and the Penn Plaza market.”
Cole Schotz represented Onyx Equities in the joint venture to finance and redevelop 210 West 31st Street. Acquisition and construction financing closed with PCCP. The Cole Schotz team included members Jordan Metzger, Alan Rubin and David Rubenstein, and associate Elizabeth Navatto.