NEW YORK CITY-Demolition work has begun at 180 Orchard St., the future site of a new 23-story hotel on the Lower East Side of Manhattan.

Once demolition of the two-story building at the site is complete, work will begin on the development of the Intercontinental Hotel Group‘s Hotel Indigo.

The development is a joint venture between Brack Capital Real Estate and IHG, who paid $46 million for the property nearly two years ago, according to a report in Crain’s New York Business.

The Hotel Indigo on Orchard St. is expected to open in 2014 and will join two other Indigo branded properties in New York City in Fort Greene and Chelsea. See story in the Commercial Observer.