By Konrad Putzier
Crowdfunding startup iFunding is about to close on the land for a $250-million condo tower on Fulton Street in Manhattan, industry sources say. Erin Wickomb’s Mavrix Group will be the developer.
The tower will be built on an assemblage of six parcels at 90-94 Fulton Street, which iFunding is scheduled to close this quarter for around $7 million, sources say. No broker was involved in the transaction.
IFunding has raised $8 million for the purchase through crowdfunding, and plans to raise another $42 million in equity once the deal has closed.
Sources say iFunding also has a commitment from a large bank for a $150-200 million construction loan. The total cost of the tower, which is expected to encompass 250,000 s/f and around 75 stories, will be around $250 million.
The tower will not only be iFunding’s largest project to date, but also its first in New York. Founded in 2012 by William Skelley and Sohin Shah, the startup has raised more than $11 million for six real-estate projects across the U.S.
iFunding works as a password-protected website. Once users have created an account, they can invest in and monitor the company’s real-estate projects online. According to iFunding, it has around 4,000 investors registered on its site. It said single investments average between $25,000 and $30,000, but have been as low as $1,000.
Crowdfunding startups have become very active lately in the wake of SEC rule changes that now allow them to raise funds from accredited investors in the U.S.