Report: Brookfield to Acquire LES Hotel Indigo for $160M

Posted on: June 1st, 2018 at 5:00 am by

October 2015

Nearly three years after its long-awaited debut, the Hotel Indigo in Hell Square is set to change hands. Brookfield Property Partners reportedly signed a letter of intent to acquire the 26-story development from Brack Capital Real Estate for $160 million, according to a report in The Real Deal.

News of the potential sale arrives almost a year after the property first hit the market for roughly $176 million (i.e. $600,000 per key). The Brookfield offer, as disclosed by the publication, came in at a 10-percent discount.

The transaction is the latest chapter for the 294-room hotel. It’s one of the more notorious developments on the Lower East Side. Nicknamed a lifetime ago as the Orchard Hell Building for its neverending stalled status – demolition and reconstruction began in 2004 – Brack Capital and InterContinental Hotels rescued the half-built property seven years ago from developer Morris Platt at a $46.4 million price tag. (They nearly quadrupled the initial investment.) It would take another four years before the Hotel Indigo opened to the public.

When Marco painted the fence, Aug. 2009

During the interim, Brack completed the half-built superstructure, and sold the retail condo at the base of 180 Orchard Street and the subterranean parking garage (89 spaces) for a collective $21 million to a venture between Cohen Equities and Premier Equities.

The Lower East Side eyesore is also home to the controversial Mr. Purple, a 15th-floor restaurant, bar, and lounge with two terraces and a swimming pool. The establishment, and its hotel hosts, entered a world of shit upon the discovery that its namesake – local gardener icon Adam Purple – was an unsavory character with sordid sexual past.

Recent Stories

Construction Resumes at 139 Bowery, Awaiting 14-Story Payload

There is finally construction activity to report at the 139-141 Bowery development site. The spot has been largely dormant ever since the double-wide walk-ups were summarily razed three years ago. With the area now buzzing, the march toward a fourteen-story future continues. Plans to redevelop the properties, in one form or another, date back to […]

Partybus Bakeshop Soft Opens on Essex Street

The Partybus is parked on Essex Street and now serving. The new bakeshop – situated directly across from Seward Park – soft opened to the public yesterday. Founded by baker Jacqueline Russo Eng, Partybus Bakeshop got its start in the nearby Hester Fair before going brick-and-mortar at 31 Essex. It offers a “rotating seasonal menu […]

Little Gio’s Pizza Expands with Orchard Street Outpost

An East Village pizzeria is making its way south into Hell Square. Little Gio’s, which currently holds down a parlor on 1st Avenue, just announced its expansion a few blocks south to 194 Orchard Street. The five-year-old business took over, and installed the requisite signage atop the shuttered gate. The space had been vacant in […]

This is the Car Horn Every Pedestrian Needs [VIDEO]

In a world driven by technology, here’s a welcomed, albeit impractical, analog solution to a maddening pedestrian problem. We’ve all had to deal with it at one point or another. An indecisive three-wide, ambling past a restaurant. Sidewalk selfie snappers. Tourists in herd formation. iZombies. Children walking irrationally. There’s only so many times you can […]

Cherry Street Hockey Rink Resurfaced with Turf Field

Street hockey players in the city, but the Lower East Side especially, are now short-handed. The ever-reliable Tanahey Playground rink on Cherry Street is officially gone. The city removed the rotting boards and benches last week, and completed carpeting the concrete with AstroTurf. As first reported last summer, the space was repurposed to accommodate organized […]