CrowdFunding to lift 23-story NYC Hotel

 

A real estate developer has kicked off a crowdfunding project at 17 John St. downtown. Photo: CoStar Group

A real estate developer has kicked off a crowdfunding project at 17 John St. downtown.
Photo: CoStar Group

BY JOE ANUTA ,  New York real estate developer has kicked off a crowdfunding project at 17 John St. downtown, where he hopes to convert an existing apartment building into an extended stay hotel.

Rodrigo Nino’s Prodigy Network will start crowd funding for the project next week, where investors can buy equity in the project at $100,000 a pop. The novel use of crowdfunding takes advantage of investing regulations that were relaxed by the Securities and Exchange Commission just two months ago.

“Thanks to the connectivity of the Internet age, this provides a model for people who want to have more control where their money is,” Mr. Nino said.

Prodigy put an $8.5 million down payment on the building last week, and along with traditional financing through a bank, hopes to raise $31 million through crowdfunding to close on the property before beginning renovations. The crowd-funded money will be handled by a third-party fiduciary, according to Mr. Nino.

The ultimate goal is to renovate the existing 15-story brick apartment building and add an eight-story glass tower to the top of the structure. The project will be designed by Dutch architect Winka Dubbeldam, founder of the New York firm Archi-tectonics.

The project is planned as a 23-story extended-stay hotel, which Prodigy said is designed to meet demand generated by the World Trade Center buildings nearing completion less than two blocks to the west. As those buildings fill up he is betting that his property will increase in value, giving investors a return on their money.

Crowdfunding for large projects like 17 John St. was opened up to smaller investors in last September, when the commission both lowered the asset requirements to become what is known as an accredited investor, and also allowed companies like Prodigy freedom to advertise investment opportunities, something which was previously prohibited.

Critics of the move say the new regulations open up investment neophytes to potential heavy losses, but Mr. Nino contends that it allows smaller, accredited investors to stop relying on third-party portfolios and instead opens up opportunities for larger returns.

He has already pursued a similar model at another downtown building called AKA Wall Street, which is currently under construction.

HEADLINE NEWS

This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news [...]

ForbesCrowdfunding Do's And Dont's From iFundWomen's Karen CahnForbesDuring our conversation, she was transparent in sharing that her first software company, VProud, failed because she “did everything backwards” and spent too much time trying to perfect the product. “Pe [...]

Crowdfunding For French CastlesNPRYou too can own a French chateau, in part, anyway. Romain Delaume, CEO of Dartagnans, tells NPR's Scott Simon about a crowdfunding effort underway to preserve La Mothe-Chandeniers. SCOTT SIMON, HOST: What if I told you that for about $60, you cou [...]

VentureBeat10 reasons the $1 million crowdfunding cap should be $20 millionVentureBeatIt's been18 months since the final rule of the JOBS Act went into effect, allowing equity crowdfunding. In those 18 months, everything proponents of the rule said would happen (and none of what [...]

The IndependentFrench Chateau bought by 10000 people through crowdfunding schemeThe IndependentIn countries where castles aren't snapped up by The National Trust and immediately furnished with a tearoom and gift shop, other ways must be found to preserve historical buildings. The [...]

Crowdfunding sites help Boulder County residents raise money to pay for treatmentsBoulder Daily CameraHer health insurance, once she reached the $2,000 deductible, covered most of the chemotherapy, but she has been receiving extra treatment at the Helios clinic in Boulder and is parti [...]

CurbedReal estate crowdfunding expands into more niche marketsCurbedTo those unfamiliar with real estate crowdfunding, the Fair-Haired Dumbbell development in Portland may be just the kind of wacky, esoteric project one envisions when imagining what happens when strangers pool funds o [...]

CGTN America (blog)Crowdfunding movement makes its way through MexicoCGTN America (blog)Crowdfunding movement makes its way through Mexico. Americas Now. Click to share on Facebook (Opens in new window) · Click to share on Twitter (Opens in new window) · Click to share on Google+ (Ope [...]

WKRN.comFranklin mother, son warn of crowdfunding dangers after scamWKRN.comFRANKLIN, Tenn. (WKRN) – Thousands of dollars raised through crowdfunding lost, as a family seeks possible legal action against one of their own. Now a Franklin mother warns others of the dangers of crowdfundi [...]

MashableLearn how to get your big idea off the ground with crowdfundingMashableJust to let you know, if you buy something featured here, Mashable might earn an affiliate commission. Instead of fielding requests from your friends to donate to their Kickstarter or Indiegogo campaigns, w [...]

CFB Finance

Marketwired

  • Crowdfunding
  • Crowdfund
  • Peer to Peer Lending
  • FinTech
  • Reg A+
  • Reg CF
  • Crowdfunding USA

Press Release

Live Crowdfunding .tv

What's Next Step in Regulation A+ JOBS ACTS Title IIII :L Interview : Steve Cinelli with Brian Korn Securities and Crowdfunding/Peer-to-Peer Lending Lawyer, Watch more video library | Conference | Interview | Campaign Showcase | Research | Education |