All units range from 500 to 600 square feet
Prices range from $1.2 million to $1.5 million
For once, the profits from the sale of pricey condos won’t only enrich the developer.
New York City’s first crowd-funded condo project, partially financed by investors who chipped in as little as $50,000 for a share, is about to hit the market, with apartment prices starting at $1.2 million, the Daily News has learned.
The project, a joint venture between crowdfunding platform the Prodigy Network and corporate apartment provider Korman Communities, raised more than 10% of its equity from small-time investors to acquire and renovate the building.
Those investors will catch their fiscal windfall when the building’s condos sell out — and stand to make the 15% return that would normally line the developer’s pocket.
Sales are about to launch at the partially crowd-funded development
“They’ll do very, very well,” said Rodrigo Niño, CEO of Prodigy, which bought the 95-unit, 20-story building with Korman for $68.5 million last year.
The condos, at 234 E. 46th St. between Second and Third Aves., are all one-bedroom units and are targeted toward foreign buyers who want to live in New York part time and rent out their properties for the rest of the year.
Buyers will be able to rent out their units through Korman’s luxury extended-stay platform AKA during the months they don’t plan on occupying them. Apartments in the AKA program are rented on a month-to-month basis by people in town on business and have been leased by operations such as President Obama’s security detail, which leased space during his first campaign, and the cast of “Men in Black 3.”
Rodrigo Niño, CEO of Prodigy Network, a crowd-funding platform for commercial real estate development
“This is tailored perfectly for out-of-towners who come here on a transient basis,” Niño said. “When they come here, they don’t have to stay in a hotel. They can stay in their own home and even cover their costs by renting the apartment out when they’re not here. There’s been nothing until now that meets demand for that.”
Larry Korman, president of AKA, said the move to sell its real estate as opposed to just leasing it came as a response to insatiable demand from foreign buyers looking to own a slice of New York City real estate, without the hassle that comes with managing it.
“It was a natural evolution,” he said.
All the units, which range in price from $1.2 million to $1.5 million and in size from 500 to 600 square feet, will have white oak floors, stainless steel appliances and custom cabinets. Most of the homes will also have their own private balconies and come with access to a landscaped rooftop lounge. Many United Nations delegates have already showed interest in the apartment because of the building’s proximity to the UN, Niño said.
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