Rendering via Prodigy Network
Real estate crowdfunding startup Prodigy Network has closed on the purchase of 17 John Street in downtown Manhattan.
The firm acquired the 15-story rental building for $85.3 million, including more than $25 million in crowdfunded equity. Accredited investors from more than 12 different states and 10 countries put up money for the project, in sums starting from $50,000. Deutsche Bank provided senior financing, and subordinate financing came from a New York-based institutional investor.
Prodigy plans to convert the building into a 23-story extended stay hotel with 191 furnished units, including full kitchens and workspaces. 17John will be a “Cotel” concept, with co-working spaces and opportunities for collaboration.
17John is the second Manhattan crowdfunded property snapped up by Prodigy. Its predecessor, AKA Wall Street, closed in November 2013, with financing from the Canadian Imperial Bank of Commerce. The 17-story pre-war building is currently under construction and slated to open in the summer of 2015 as a 19-story, 180-unit extended-stay hotel. Renovations will include a freshly upgraded lobby, as well as a new lounge, cafe, gym and outdoor space for residences, according to Prodigy’s site. The studio, one-bedroom and two-bedroom suites will range in size from about 450 to 1,000 square feet.
A pioneer in crowdfunding real estate, Prodigy made waves when it raised $191 million for a mixed-use skyscraper in Bogotá, Colombia. Prodigy’s Manhattan portfolio exceeds an estimated $450 million in commercial real estate properties, with more than $70 million of crowdfunded equity.