Brack Capital Real Estate (BCRE), in a joint venture with IHG (InterContinental Hotels Group), has completed the acquisition of 180 Orchard Street on the Lower East Side of Manhattan for approximately $46 million in an all-equity transaction. BCRE will own 51 percent of the shares in the joint venture while IHG will own the remaining 49 percent. IHG’s investment in the project will be up to $30 million. The team plans to develop a multi-use property to include a 290-room Hotel Indigo with retail component and parking.
“This prime development site presents an untapped opportunity to create a project that will benefit neighborhood residents while adding value to the area overall,” said Issac Hera, chief executive officer of Brack Capital Real Estate. “Our strategic relationship has set the stage for many future projects with IHG and we are honored to bring this development site to fruition and offer the community a completed, expertly-managed project that will help this dynamic neighborhood further flourish.”
Scheduled to open in 2013, the Hotel Indigo on Orchard Street will feature soaring ceilings and upper level hotel rooms that will showcase incomparable unobstructed city views. The hotel will include such amenities as a restaurant, bar, state-of-the-art fitness center and outdoor pool. Following the signature Hotel Indigo standards, the project will include inviting guestrooms with oversized beds and hard-surface flooring for a fresh, residential feel, spa-inspired showers with Aveda products, and free wired or wireless high-speed internet access.
Each Hotel Indigo property is uniquely designed to reflect the culture, character and history of the surrounding neighborhood. No two hotels are the same. Brand standards don’t dictate the number or size of rooms, making it ideally suited to conversion properties or independent boutique hotels. The Hotel Indigo Lower East Side will be managed by InterContinental Hotels Group.
“It’s a privilege to be able to foster a strategic relationship with Brack Capital Real Estate as together we will bring a new Hotel Indigo to the New York City market,” said Jim Abrahamson, president, the Americas, IHG. “This joint venture complements our strategy of investing capital into our brands to accelerate their growth. In this case, the Lower East Side of Manhattan is a perfect fit for the Hotel Indigo brand and allows us to continue to work with the right owners to put the right hotel brand in the right location. We look forward to many successful years working together.”
180 Orchard Street is conveniently located just south of Houston Street in the heart of Manhattan’s exciting and vibrant Lower East Side. Known for its creative energy and tight-knit, neighborhood feel, the Lower East Side is a top-rated destination highly regarded for its innovative dining, unique boutiques, diverse entertainment, cutting-edge artistic community, relaxing parks and historic sites. The neighborhood offers easy access to public transportation with a number of subway lines connecting the area to destinations within Manhattan and beyond.