Hotel Indigo promotional image.
It looks like Brookfield Property Partners is about to pick up the Lower East Side’s Hotel Indigo for $160 million.
According to The Real Deal, the firm has signed a letter of intent with Brack Capital Real Estate, which developed the property at 180 Orchard St./171 Ludlow St.
Brack Capital and InterContinental Hotels Group purchased the stalled construction site for $46 million in 2011. The 294-room property with an oddly named rooftop bar opened in the middle of 2016. Last summer, Commercial Observer reported that the 26-story Hotel Indigo had been listed for $176 million.
The retail stores and a parking garage connected to the hotel were sold off a few years ago. The stores have remained mostly vacant since they were ready for occupancy.
180 Orchard Street, this afternoon.
It’s demo day at 180 Orchard Street, one of the neighborhood’s most infamous construction sites. The heavy machinery is making quick word of the two story shell of a building. The structure is being taken down so crews can begin building a 26-story, 250 room Hotel Indigo.
It’s been a long haul for residents and local businesses on Orchard Street, who have had to put up with this eyesore since the bottom fell out of the real estate market several years ago. In 2011, Brack Capital bought the property for $46 million from developer Morris Platt. As we reported in November, this project is part of a huge hotel building boom on the Lower East Side. Just based on already-announced projects, the hotel room inventory is expected to triple to more than 1600 rooms in the next couple of years.
Click through for more photos, plus a rendering of the new Orchard Street hotel.
Issac & Stern Architects’ renderings of 180 Orchard St., a future Hotel Indigo.
After living with sidewalk sheds and scaffolding for almost five years, it can be hard to imagine how upper Orchard Street will look when two long-delayed hotel projects are completed. Luckily, the professionals over at Issac & Stern Architects have been hard at work providing us some renderings.
The larger of the two projects in the firm’s portfolio, a 26-story, 250-room Hotel Indigo on 200,000 square feet at 180 Orchard St. owned by Brack Capital, may quickly be nicknamed “Blue II,” if the drawings are true to color. The smaller project, a 10-story building with 33 suites planned on 17,000 square feet at 163 Orchard St., seems to lean green. Thanks to grandfathered zoning, both buildings will tower over their tenement neighbors.
Meanwhile, another Brack Capital project on the LES, a CitizenM Hotel planned at 185-191 Bowery, has also made a recent appearance on the Internet.