Crain’s is reporting today that Brack Capital Real Estate and hotel industry giant IHG have struck a $46 million deal for a joint venture that will turn a longtime Lower East Side eyesore into a 290-room hotel to be completed in 2013.
The property will be a Hotel Indigo, a boutique brand that is part of a vast IHG stable, which includes InterContinental Hotels & Resorts, Crowne Plaza Hotels & Resorts and Holiday Inn Hotels & Resorts. The new property is scheduled to open in 2013. It will boast such amenities as a restaurant, bar, state-of-the-art fitness center and outdoor pool.
“This prime development site presents an untapped opportunity to create a project that will benefit neighborhood residents while adding value to the area overall,” said Issac Hera, chief executive of Brack Capital Real Estate, in a statement.
Today’s news follows a March decision by the city’s Board of Standards and Appeals to extend the property’s building permits, which were set to expire. In seeking the extension, building owner LES Realty Group LLC represented that it had already spent more than $12 million on the stalled project, which it estimated at a total cost of $70 million.
Meanwhile, the buildings department’s records still show a partial stop-work order in place, which was filed in September of last year and cites “failure to protect adjoining roof and skylights.”
Stay tuned; we’ll have more on this story as details emerge.