NEW YORK—Synapse Development Group, a real estate investment and development firm headquartered in New York City, and its joint venture partner AQARAT (Kuwait Real Estate Company), have launched a crowdfunding campaign on the RealCrowd platform for the redevelopment of 1095 Market Street in the burgeoning Mid-Market neighborhood of San Francisco. The partnership plans to convert a historic office building into a 203-key hotel operated by YOTEL, the pioneering technology-focused hospitality brand. YOTEL San Francisco will be the first crowdfunded hotel in San Francisco. The Partnership has opened the offering to accredited US Investors, international investors, and IRAs with a minimum investment starting at $25,000.
“Our team is excited to open an institutional quality investment opportunity to accredited investors in a market as strong as San Francisco,” said Justin Palmer, CEO of Synapse Development Group. “Investors will be able to enjoy the financial benefits of ownership, as well as perks such as discounts, owner-exclusive VIP parties at the rooftop bar, and access to membership benefits at YOTEL’s around the world.”
1095 Market Street is located at the corner of Market Street and 7th Street in San Francisco’s emerging Mid-Market neighborhood, home to tech giants like Twitter and Uber. It is currently an eight-story, 110-year-old landmarked office building totaling 71,944 square feet. Upon completion—slated for 2017—the office building will be converted into a nine-story 203-key YOTEL branded hotel, totaling 84,000 square feet. The hotel will be home to YOTEL’s signature Club Lounge concept, including flexible meeting and co-working spaces as well as a signature ground-floor restaurant and truly unique rooftop lounge with 360-degree views of the city.
YOTEL’s Chief Development Officer Jason Brown noted, “We’re truly excited to be working with our forward-thinking partners, Synapse Development Group and AQARAT, along with the RealCrowd platform to be among the first wave of hoteliers and investors taking advantage of what is shaping up to be over a $2.5 billion source of capital in 2015. Crowdfunding is rapidly becoming a serious source of investment capital in hospitality real estate and is consistent with our philosophy of always striving to create opportunities to bring together enthusiastic, energetic, young-at-heart entrepreneurs both as guests and owners of YOTEL’s worldwide.”
“AQARAT is delighted to participate, along with our partners Synapse Development Group, in the crowdfunding launch of YOTEL San Francisco,” said Fahad Al-Shamlan, vice president, investments and acquisitions of AQARAT. “YOTEL’s innovative, technological fabric, long with YOTEL San Francisco’s location in the technological hub of Mid-Market, serve as the ideal platform for San Francisco’s first crowdfunded hotel.”