Arcade Capital is planning to buy an unfinished hotel on the Lower East Side’s Orchard Street for $33 million.
The Park Avenue-based investment firm intends to turn the uncompleted Allen Street Hotel into an upscale hotel at 139-141 Orchard Street, according to the New York Daily News.
Ben Zhavian‘s DAB Group, the former owner of the hotel, stopped making mortgage payments on the property in 2011. Maverick Real Estate Partners acquired the loan soon after.
Arcade, which has agreed to pay $33 million for the property and will act as a stalking horse at the auction, is expected to purchase the site when it hits the block next month.
The price works out to $336,000 per key at the 98-room property.