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.

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