The $162M Spoiler in the Hotel Indigo Deal on the Lower East Side

Posted on: June 11th, 2018 at 9:39 am by

Two weeks ago, news leaked that Brookfield Capital Real Estate was nearing a deal to acquire the Hell Square Hotel Indigo for $160 million. A spoiler just entered the ring.

According to a report in The Real Deal yesterday, a real estate juggernaut called MRR Development swooped in for the kill, allegedly offering $162 million for the 26-story, 294-room skyscraper. It’s reported that the property is now under contract. (Seller is a joint venture between Brack Capital and InterContinental Hotels.)

The purported deal is almost a year after the property first hit the market for roughly $176 million (i.e. $600,000 per key).

This Hotel Indigo is one of the more notorious developments on the Lower East Side in recent years. 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.

Recent Stories

Protest Violence: LES Small Businesses Vandalized

A fifth night of protests spilled onto lower Orchard Street yesterday, as several businesses were vandalized. The Roasting Plant coffee shop, R&D (formerly Brigitte) on Canal street, and the Alexander Olch boutique, were all hit. Shattered windows and looting. It’s unclear what was taken from each store. With regard to Olch’s store, vandals tagged it […]

Scenes from the Looted Streets of Downtown [PHOTOS]

A weekend of violent protests and looting – fueled by the death of George Floyd at the hand of Minneapolis cops – left downtown Manhattan charred and shattered. Businesses in SoHo up to Union Square were some of the hardest hit. Boogie contributor Eddie Panta was eyewitness to the smash-and-grab bedlam. Part I: The Nike Store […]

DIY Banner Hung Above FDR Drive in Tribute to George Floyd

Whenever an event of significance hits the news, neighbors can easily expect a new banner unfurled on the Delancey Street foot bridge over the FDR. Indeed, for the third time in as many months, a new message. “I can’t breathe,” a tribute to George Floyd, for whom these were final words. While being placed in […]

Despite Lockdown, ‘Bel-Fries’ Overcrowded Ludlow Street with a Major Party on Sunday

What lockdown? In Hell Square, it’s almost as if the last few months were in vain. Sunday afternoon saw an overflowing party for the opening Bel-Fries on Ludlow Street. It was seemingly planned for maximum marketing value, despite the COVID-19 lockdown. A “Miami style” event with luxury cars, deejay booth, professional photo rigs, and plenty […]

Aerial Photos Call into Question City’s Decision to Fully Demolish 70 Mulberry Street

On the evening of January 23, as Chinatown residents prepared for the Lunar New Year, a devastating five-alarm fire decimated the former PS23 at 70 Mulberry Street. Nearly five months later, many in the neighborhood continue to question the city’s choice to fully demolish the facility. Especially after the emergence of aerial photos showing the […]