The hotel site at 139-141 Orchard Street/139 Allen Street has been finally been checked out, selling at a bankruptcy auction for $30.75 million, reports the Real Deal. The winners of the bid were Morris Moinian of Fortuna Realty and his investment partner, Morry Kalimian of Elk Investors.
The severely stalled hotel site was originally purchased in 1999 by Ben Zhavian of the DAB Group, a Valley Stream developer. Construction began but was never completed, and in 2011 DAB reportedly stopped making mortgage payments, provoking a legal battle between them and their creditor, Maverick Real Estate Partners.
The deal is pending a hearing for approval by the U.S. Bankruptcy Court. Assuming all goes well, Moinian plans to have the hotel completed within 12 to 16 months.
- Morris Moinian wins auction for LES hotel site [The Real Deal]
- Orchard/Allen Street Hotel Site Sold at Auction For $30.75 Million [The Lo-Down]
- All Allen Street Hotel Coverage [Curbed]