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KBS Strategic Opportunity REIT II JV to Redevelop Property Near Madison Square Garden

KBS Strategic Opportunity REIT II, a publicly registered non-traded real estate investment trust, entered into a joint-venture agreement with Onyx Equities LLC to redevelop 210 West 31st Street, which is situated directly across from Madison Square Garden. In 2014, Onyx entered into a ground lease for the 8,637-square-foot land parcel owned by the Province of St. Mary.

KBS Strategic Opportunity REIT II and Onyx plan to redevelop the property into two stories of dining and retail space, offering a rooftop deck and outstanding, 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.

“In recent years, the Penn Plaza submarket has and continues to draw creative industries including technology, advertising, media and information companies,” said Jamie Rodgers, executive vice president and head of acquisitions for the KBS Strategic Opportunity REITs.

210 West 31st Street is located across from Madison Square Garden and Penn Station near the intersection of 7th Avenue and West 31st Street.

In other news, KBS Strategic Opportunity REIT II recently acquired a multifamily property in Hollywood, California.

Onyx is a New Jersey-based private real estate investment firm that owns more than $2 billion in real estate assets throughout New Jersey, New York, Pennsylvania and Connecticut.

KBS Strategic Opportunity REIT II went effective in August 2014 and focuses on investing in real estate-related loans, opportunistic real estate, real estate-related debt securities and other related investments located in the United States and Europe. Through a private placement offering and subsequent initial public offering, the REIT has raised a total of $153 million in investor equity, according to Summit Investment Research. The company’s portfolio also includes two hotel properties, two office properties, a multifamily property, an investment in an unconsolidated entity and an originated a first mortgage loan.

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