Blue Moon Hotel on Orchard Street Raises Asking Price Again, This Time to $21M

Posted on: December 15th, 2014 at 5:03 am by
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The Blue Moon Hotel is a lesson in real estate pricing. Know the value of the property before asking for the farm. In this case, the boutique hotel at 100 Orchard Street has been on the chopping block countless times in the last decade (the first listing was in 2005 for $20 million) for a wide range of prices. So often, in fact, that the 22-room lodge itself is now something of a punchline within industry circles.

Nevertheless, the Blue Moon Hotel increased its ask to $21 million. That’s a $2 million increase. It’s worth noting here, however, that the property was appraised three years ago at half the amount sought. And now they’ve just tapped the services of the Massey Knakal brokerage on an exclusive basis to peddle the real estate. Indeed, the listing for 100 Orchard appeared a few days ago and carries a different dialect of broker babble from previous sales attempts.

Located on the west side of Orchard Street between Delancey and Broome Streets, the property offers an outstanding location in one of the trendiest emerging neighborhoods in Manhattan and home to some of the most exciting hotel projects in the City. The property was developed into a hotel in 2005, featuring 22 oversized guest rooms ranging from 320 SF to 750 SF. Additionally, the property offers a fully fiished, and virtually unused, commercial kitchen. Since the Hotel’s opening, it has garnered tremendous media attention for a property of its size, a sampling of which can be viewed here: Bloomberg.com; International Herald Tribune; and the New York Times.

The lobby and basement levels offer approximately 2,800 SF of ground level and basement level space that create a potentially lucrative retail application. The property presents a significant value add opportunity through a wide range of strategies including the incorporation of retail, creation of additional rooms through subdivision, enhanced sales and revenue management, and/or a possible conversion to residential apartments.

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Meanwhile, the Blue Moon Hotel is trying everything in the arsenal to more effectively gain awareness. Almost laughably so. Grandiose clipart claims, seemingly printed on a 1987 inkjet, are placed in the windows to attract more visitors. For instance, “The Hotel for the arts” or “The Jewel of the Lower East Side.”

Here’s a quick reminding of asking prices for the Blue Moon Hotel by year…

August 2014: $19 million
August 2013: $19 million
September 2012: $16.5 million
May 2012: $19.5 million
July 2011: $29 million
September 2009: $35 million
May 2005: $20 million

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