Long-Stalled Allen Street Hotel Hopes to Fetch Upwards of $30M

Posted on: November 5th, 2014 at 10:05 am by

This image has been archived or removed.

The Allen Street Hotel is still stalled out

Of the five Orchard Street hotels between Houston and Delancey, it’s the skeleton structure at number 139 that’s losing the race. While legal proceedings continue ad infinitum, this arrested development continues to rot before our eyes. Indeed, the Allen Street Hotel, as it’s called, fell into default during the downturn of 2011, and has been stalled in bankruptcy proceedings ever since.

However, Crain’s reported this week that Massey Knakal has reportedly been tasked with finding an angel buyer to revive this zombie. They hope to score at least $30 million for the half-built hotel:

James Nelson, the company’s second-most prolific dealmaker behind Mr. Knakal, has brought 139 Orchard St. to market. That building is a half-finished hotel that fell into default during the downturn in 2011. To bring it out of a long-stalled bankruptcy proceeding, Mr. Nelson is marketing the property in what is called a 363 sale, in which he finds a bidder to set a market value it.

The property is then auctioned widely using that price as a minimum bid. Mr. Nelson said he expects the sale price to exceed $30 million.

Early renderings showed the Allen Street Hotel as looking something like this. We’ll keep a close eye on developments here…

This image has been archived or removed.

Early rendering of the Allen Street Hotel

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