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