KBS Capital is in contract to acquire the majority stake in a two-story church from Onyx Equities for $39.8 million, according to the REIT’s filings with the Securities and Exchange Commission. Together, the firms are planning a retail conversion on the site.
The deal would value the property, located at 210 West 31st Street, at $48 million. KBS is taking an 80 percent interest; Onyx Equities is keeping the remaining 20 percent.
KBS and Onyx intend to redevelop the 23,110-square-foot building, formerly the site of a monastery associated with the Church of St. John the Baptist, into a two-story retail property, at an estimated cost of $14.2 million.
The proposed development will divide the L-shaped space into three retail properties, with all three sharing the ground floor, in addition to space on the lower and upper levels, for a total of approximately 30,000 square feet. The property has the potential for a rooftop patio and 750 square feet of signage along West 31st Street.
David Colen, of Newmark Grubb Knight Frank, brokered the deal. Jeffrey Roseman, also at NGKF, is marketing the property for lease.
KBS Capital, through its Strategic Opportunity REIT II, intends to finance the purchase with investor capital as well as a loan.
KBS declined to comment. Onyx was not immediately available for comment.