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Developer to Use Crowdfunding for Manhattan Hotel

Prodigy Network, a New York real estate company, has plans to turn a downtown Manhattan building into an extended-stay hotel. And the firm hopes to do so through a crowdfunding initiative.

According to this report from the Wall Street Journal, Prodigy Network was successful at raising $171 million in $20,000 increments for a mixed-use skyscraper development in Bogotá, Colombia. The company hopes to bring that success to the States by raising $31 million in equity, $100,000 at a time.

The move would take advantage of the Securities and Exchange Commission’s move to lift a decades-old ban on private companies advertising investments that aren’t registered with the SEC. The change is scheduled to go into effect on Sept. 23.

Rodrigo Niño, Prodigy’s chief executive, told the Wall Street Journal that the SEC’s move benefit both investors and developers: “We have learned that crowdfunding not only democratizes investments, it also makes projects viable that otherwise would not be possible.”

More over on the Wall Street Journal.

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