KBS Strategic Opportunity REIT II, a publicly registered, non-traded real estate investment trust, completed the purchase of Q&C Hotel in New Orleans for $51.2 million in a joint venture with Dallas-based Encore Hospitality, LLC.
The DI Wire reported on the transaction in October when the REIT originally signed the purchase and sale agreement with AGRE NV Q&C Property Owner LLC.
Built in 1913 and fully renovated in 2014, the Q&C Hotel will be branded under the Autograph Collection of Marriott International, Inc. (NASDAQ: MAR). The hotel features 196 guest rooms, 2,600 square feet of flexible meeting space, a restaurant and bar, valet and self-parking, and a 24-hour onsite fitness center. Its Q&C Bar is open for breakfast, lunch, dinner and happy-hour cocktails, and was recently named the Best Kept Secret in the Downtown NOLA Awards and among the Top 10 Happy Hours by St. Charles Avenue Magazine.
The 12-story, two-building hotel is located at 344 Camp Street in downtown New Orleans, three blocks away from the French Quarter. Bourbon Street, the Superdome, the New Orleans Morial Convention Center, museums, and most of the city’s Class A office space are located within a 15-minute walk from the hotel.
“We are thrilled to acquire the Q&C Hotel in the dynamic market of New Orleans,” said Brian Ragsdale, executive vice president at KBS. “We believe New Orleans’ robust tourism industry coupled with the property’s recent renovations will make it a strong asset in the KBS Strategic Opportunity REIT II portfolio.”
Encore Hospitality will manage the hotel.
KBS Capital Advisors is the external advisor to the various KBS real estate investment trusts, and is an affiliate of KBS Realty Advisors, a private equity real estate company and SEC-registered investment adviser founded in 1992. Since its inception, KBS-affiliated companies have completed transactional activity in excess of $30.5 billion via 14 separate accounts, six commingled funds, five sovereign wealth funds and six non-traded REITs.