DLJ Real Estate Capital Partners put the kibosh on a Lower East Side hotel conversion plan that had been years in the making.
The Midtown-based firm is abandoning plans to create an Ace Hotel at the site of the landmarked, 12-story Jarmulowsky Bank building at 9 Orchard Road, instead opting to market the building as “creative office space,” it said a letter to industry insiders, Bowery Boogie reported.
The company is still in the midst of renovations at the 60,000-square-foot property, with plans to recreate the building’s original cupola, among other repairs.
DLJ bought the property for $36 million in late 2011. The hotel plan came at a time when Manhattan’s hospitality building boom was just getting off the ground. These days, new hotel building is way down, as is occupancy at existing properties.