CoStar reports that the hotel, located in the Metropolis megaproject, is asking $280 million. Developer Greenland USA reportedly plans to use the funds from the hotel’s sale to help finance the remaining elements of the ambitious Metropolis project, which is set to be complete in 2019.
The move comes as Chinese companies take a step back from U.S. projects in the wake of a move by the country’s government to restrict private companies’ investment in overseas real estate and entertainment.
The $1-billion Metropolis project is being built in phases. In addition to Hotel Indigo, the project includes retail and three towers of 38, 40, and 56 floors, respectively, with more than 1,000 residential units combined.
The project’s residential component had been planned as condos, but CoStar says that Greenland is now considering converting all the units into rentals. That plan would involve Greenland selling the rentals to a multifamily operator once the project was complete.
Those high-end rentals would be coming to market at a time when Downtown’s vacancy rate is at a 17-year high and landlords are giving away months of free rent and parking to tenants.