Prodigy Network, a real estate crowdfunding platform founded by entrepreneur Rodrigo Niño, has closed on their purchase of 17 John Street in Manhattan for a stated price of $85.3 million including over $25 million in crowdfunded equity. Additional senior financing came from Deutsche Bank with subordinate financing from another institutional investor. According to a release, Prodigy Network captured accredited investors from more than 12 different states and 10 different countries with amounts invested starting at $50,000. This is the second New York City prime property that Prodigy Network has closed in the past 12 months. The first, AKA Wall Street, has commenced construction and has a targeted open date of Summer 2015.
Prodigy Network has laid claim to the single largest crowdfunding project ever. The BD Bacatá skyscraper in Bogota, Colombia raised capital via crowdfunding to the tune of over $170 million. Prodigy Network, founded in 2003 by Niño, saw a compelling opportunity in crowdfunding. After the success with BD Bacatá – Prodigy moved aggressively to generate similar opportunities in one of the most popular real estate markets in the world.
“We are thrilled to have closed on 17John. Its location is at the core of the emerging Financial District and represents an unprecedented opportunity for those who have always wanted to invest in Manhattan real estate. Securing financing from traditional lenders such as CIBC and Deutsche Bank further validates our crowdfunding model,” said Rodrigo Nino.
17John Street is an extended stay property will be 23 stories and feature 191 furnished units, including full kitchens and workspaces and state-of-the-art technology. Each extended stay residence is designed for the international traveler looking for a community and opportunities in New York City.
“17John further establishes crowdfunding in commercial real estate as an efficient way to provide access to smaller accredited investors to institutional quality projects that were previously unavailable to them,” said S. Lawrence Davis, Principal of Prodigy Capital Group, parent company of Prodigy Network.
Niño has stated in the past that he does not see why non-accredited investors are largely blocked by regulations to participating in one of the most promising aspects of investment crowdfunding. Until rules are changed – only accredited investors may participate for now.
Prodigy Network states its Manhattan portfolio exceeds now an estimated $450 million in top Manhattan commercial real estate properties with over $70 million of crowdfunded equity.
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