Stalled Allen Street Hotel Sells in Auction for $30.75M; Moinian Father and Son Now Own Hotels Here

Posted on: May 11th, 2016 at 5:11 am by
This image has been archived or removed.

After a drawn-out foreclosure process wrought with drama and years sitting vacant, the sixteen-story Allen Street Hotel is finally under new ownership. The properties comprising 139-141 Orchard Street sold in auction yesterday to real estate tycoon Morris Moinian and his partner Morry Kalimian of Elk Investors.

The duo paid $30.75 million for the eyesore, and plans to finish the project within twelve to sixteen months, according to the Real Deal.

Like father like son. Indeed, with this high-profile purchase, both father and son now maintain a hotel on the block. Nico Moinian constructed the the eleven-story Orchard Street Hotel just up the block, itself a troubled property years in the making.

The Allen Street Hotel snuck onto the scene in the eleventh hour before the 2008 zoning took hold, and slyly ascended sixteen stories. Three years later, owner-developer D.A.B. Group allegedly ceased the necessary mortgage payments, and the property slipped into foreclosure. A messy set of bankruptcy proceedings followed. Today, as it stands, the construction is little but a skeletal superstructure that contributes nothing to the block.

Recent Stories

Help Support Gem Spa on St. Mark’s Place Tomorrow

A perfect storm of misfortune has plagued the Gem Spa these last few months, causing a precipitous loss in business. From landlord issues to the temporary ban on cigarette sales and the loss of Zoltar, it’s hitting the bottom line. Fear of forever closure is palpable at 131 Second Avenue. The plight of the East […]

With Champ Depot Out, Bowery Corner Gains Another Gallery

For more than a decade, the Champ Depot restaurant supply company occupied 176 Bowery. Now, its former home is completely empty and fetching for a new deep-pocketed tenant. There is a torrent of listings on Craigslist fishing for suitors (“last corner retail in Nolita”), yet one was already found to occupy the second floor. It’s […]

‘Partybus Bake Shop’ Parks itself on Essex Street

A different kind of party bus is rolling into the Lower East Side this fall. One ostensibly without the drunken mess. It’s Partybus Bake Shop, an artisanal bakery opening in the former Chinese seafood wholesaler at 31 Essex Street. Upon debut next month, expect a “rotating seasonal menu [of] classics including breads, pies, and cookies […]

Scaffolding Finally Deposed from the DL

It’s trading one eyesore for another. The longstanding scaffolding attached to the facade of The DL on Delancey Street is finally gone. Workers deposed the iron appendages earlier this week. You’ll recall that in July 2016,  a chunk of exterior dislodged from 95 Delancey and tumbled to the sidewalk below. The structural collapse resulted in […]

COLORS Restaurant Announces Return to Stanton Street 2 Years After it Closed Down

Two years after COLORS restaurant shuttered, news comes down the pike of its revival. COLORS moved from NoHo to 176 Stanton Street in the winter of 2017, but didn’t quite make a dent. It closed within months of opening. Now, a report that it’ll return sometime next month. The announcement arrived yesterday, on the eighteenth […]