Prodigy Network has closed on the purchase of 17 John Street in downtown Manhattan.
17John was purchased for $85.3 million, with more than $25 million in crowdfunded equity, senior financing from Deutsche Bank and subordinate financing from a New York based institutional investor.
Accredited investors from over 12 different states and 10 countries invested in participations starting at $50,000 dollars in this prime New York building.
17John is the second Manhattan property by Prodigy Network to close in less than one year. The first, AKA Wall Street, now under construction and slated to open in the summer of 2015, closed in November 2013 with financing from the Canadian imperial Bank of Commerce (CIBC).
“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, CEO of Prodigy Network.
Upon completion of construction, the 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 to be collaborative 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.