NEW YORK CITY—A joint venture between Prodigy Network and Korman Communities has closed on AKA United Nations, located at 234 E. 46th St. between 2nd and 3rd avenues. The property was purchased for $68.5 million, with more than $10 million raised in crowdfunded equity, senior financing from Bank of America, and subordinate financing from Emmes & Co. Eastdil Secured LLC represented the seller in the transaction. GlobeSt.com has learned that Doug Harmon and Adam Spies of Eastdil brokered the deal.
The 95-unit, 20-story property will undergo renovations to further enhance its luxury offerings and amenities and will include a furnished courtyard, lobby lounge, state-of-the-art health and fitness center, conference area with business services, private terraces and a 24-hour doorman. A rooftop lounge featuring views of the Manhattan cityscape and East River will be added, with renovations slated for completion in Spring 2015.
This is the second joint venture between Prodigy Network and Korman Communities and marks Prodigy Network's third crowdfunded project in New York City.
"Following the success of AKA Wall Street, our existing crowd of investors was quick to recognize the value associated with Korman Communities' properties," says Rodrigo Niño, CEO and founder of Prodigy Network. "The response of the crowd is far exceeding our expectations. The appetite for Manhattan commercial real estate is global."
Adds Bradley J. Korman, Co-CEO of Korman Communities, “The AKA platform continues to be the market leader in luxury furnished residences throughout the United States and we continue to look for opportunities to grow our portfolio. Prodigy Network has proven to be the premier provider of crowdfunded equity and we are very proud of our partnerships."
"The acquisition and crowdfunding of AKA UN is consistent with our strategy of investing in discrete institutional quality assets, which historically have been unavailable to smaller accredited investors," says S. Lawrence Davis, principal of Prodigy Capital Group, parent company of Prodigy Network. "With over $240 million of senior and subordinate debt provided by major money center banks and domestic pension funds it is clear that traditional institutional financing sources embrace crowdfunding."
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
