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