Nine Orchard Street, Lower East Side, Manhattan, NY
Nine Orchard Street is a 12-story, 60,000 square foot historically significant building located at the corner of Canal Street and Orchard Street in Manhattan’s Lower East Side (LES). The property, which was owned by a local investor, was vacant for many years. In 2011, DLJ RECP acquired the property, together with a smaller adjacent building, in privately negotiated transactions. DLJ RECP’s investment strategy is to complete an extensive rehabilitation to convert the property into an upscale, independent hotel. The neighborhood around the property is rapidly improving. The property’s distinctive architectural character and full block presence allow for an impactful, authentic redevelopment. DLJ RECP’s investment theme in Nine Orchard Street is similar to other properties in our portfolio – we identify underperforming assets in neighborhoods positioned for sustained growth. In this case, we believe that our redevelopment of Nine Orchard Street will further catalyze the improvement of the surrounding neighborhood.