Brack, IHG put Hotel Indigo LES on market

Owners of 294-key hotel want over $600k per key
June 08, 2017 09:35AM

Hotel Indigo on the Lower East Side (credit: Hotel Indigo) and CEO of Brack’s U.S. operations, Shai Shamir

The boutique Hotel Indigo on the Lowest East Side has hit the market, with its owners looking for north of $176 million.

The 294-key hotel, owned by Brack Capital Real Estate TRData LogoTINY and InterContinental Hotels Group, is being marketed by Eastdil Secured.

Brack expects the block-through hotel at 171 Ludlow Street — located between East Houston and Stanton streets — to fetch north of $600,000 per key, Shai Shamir, CEO of Brack’s U.S. operations, told Commercial Observer.

The developers, who bought the stalled site for $45 million in 2011, partially opened the hotel in 2015. It was fully operational as of last year. The restaurant and bar Mr. Purple occupies the 15th floor, which has 4,480-square-feet of terrace space. The hotel also has a sky lobby and outdoor pool.

Shamir said Brack and IHG always intended to sell the property, which he said is the flagship location for Hotel Indigo. “We are developers,” he said. Brack also owns two citizenM hotels in New York City.

The hotel’s retail condo and 89-car garage at the base will not be part of the sale. Meir Cohen’s Cohen Equities and Premier Equities paid $21 million in 2015 for the 10,400-square-foot retail space and 19,000-square-foot garage.  [CO] E.B. Solomont

(To view more of Brack Capital Real Estate’s commercial sale transactions, click here)