Back in June, we took a look at the winning designs for Prodigy Network’s 17John ‘Cotel’ (collaborative + hotel = cotel), the city’s first crowdsourced hotel and the world’s first collaborative hotel. Now, the real estate crowdfunding startup has closed on the 15-story rental building at 17 John Street for $85.3 million, $25 million of which came from crowdfunded equity. Additional financing came from Deutsche Bank and another institutional investor. The property will be transformed into a 23-story, 191-unit extended-stay hotel, designed for the next generation of business traveler.
Headed by Rodrigo Nino, Prodigy Network has roughly $450 million in commercial buildings in its Manhattan portfolio, with more than $70 million of crowdfunded equity. The 17John Cotel will combine a hotel, co-working space, and LinkedIn-like culture. Accredited investors from more than ten different countries invested in the project, starting at $50,000.
17John Cotel roof
According to Prodigy, “With help from Prodigy’s new crowdsourcing platform ProdigyDesignLab.com, 17John will be an innovative hotel, tapping into the collective intelligence for everything from the design of its public spaces and rooms, to the development of digital platforms to connect the experience to each guest.”
BD Bacatá (L) and AKA Wall Street (R)
Prodigy holds the record for the largest crowdfunding project ever–the BD Bacatá skyscraper in Bogota, Columbia, which raised over $170 million in capital via crowdfunding and is the tallest building in the country. The startup, founded by Nino in 2003, also recently broke ground at 84 William Street, known as AKA Wall Street. This residential building project cost $120 million; $31 million was raised through crowdfunding. Prodigy cites that its innovative investment model provides smaller investors the opportunity to participate in large-scale real estate projects previously only available to wealthy investors and large institutions.
What are your thoughts on this new real estate model and the renderings for 17John?
[Via The Real Deal]
Images courtesy of Prodigy Network
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