Greenland puts Hotel Indigo inside Metropolis on block for $280M
The move signals more issues with the firm's $1B Metropolis project
Greenland Group is shopping the Hotel Indigo located within the Metropolis complex for a reported $280 million, another indication the company is facing setbacks with the $1 billion project.
The 350-room hotel located in Downtown Los Angeles is operated by InterContinental Hotels Group. Greenland USA, a subsidiary of Shanghai-based Greenland led by Hu Gang, tapped Marcus and Millichap to shop the hotel, CoStar reported. The company may be looking to use the proceeds from the sale to finance the larger Metropolis project, according to the report.
The offering comes as The Real Deal reported last week that Greenland and other Chinese firms have pulled back from their investments in the U.S.
The change in direction is partially a result of pressure from the Chinese government to limit the amount of money leaving the country.
Greenland is also mulling the conversion of the 1,500 planned condos at the project into rentals, which would then be sold off to a multifamily operator after construction is complete, CoStar reported. In the fall, the Agency took over condo sales for the project from Douglas Elliman. Experts wondered whether there was enough demand to satisfy the enormous number of residential units that have come online in the Downtown market, and continue to do so.
Greenland completed construction of the Hotel Indigo in early 2017. Tower 1, with 308 residential units was about 80 percent complete as of December. Tower 2, which has 514 residencies was in presale, and the whole project is set to be finished next year.