Deal Marks Companies' Second JV Partnership in New York City
NEW YORK. - Sunday, September 21st 2014 [ME NewsWire]
(BUSINESS
WIRE) A joint venture between Prodigy Network and Korman Communities
has closed on AKA United Nations, located at 234 East 46th Street
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. Domestic and international accredited investors purchased
participations starting at $50,000.
The existing 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 luxury
rooftop lounge featuring views of the Manhattan cityscape and East River
will be added, with renovations expected to be complete 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,” said 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. In less than a year we have closed three Manhattan projects with
anticipated values exceeding $575 million.”
“We are very excited to
expand our relationship with Prodigy Network in the recapitalization of
AKA United Nations. 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,” said Bradley
J. Korman, Co-Chief Executive Officer of Korman Communities. “Prodigy
Network has proven to be the premier provider of crowdfunded equity and
we are very proud of our partnerships together.”
The Midtown East
location is at the heart of the United Nations Plaza district. The
building is less than two blocks from the United Nations headquarters
and three blocks away from Grand Central Terminal, one of the city’s
main transportation hubs. The property is situated on a quiet
residential street, and close to a number of museums, renowned
restaurants, flagship retail destinations, and elite schools.
Developer
Korman Communities carries forward a name synonymous with integrity,
market savvy and proven performance in the real estate development and
investment arenas. Korman’s reputation reflects four generations of
dedication and business acumen, resulting in the construction of more
than 30,000 single-family homes and 12,000 apartments and townhouses.
Korman owns and operates properties in New York City, Philadelphia,
Beverly Hills, Washington, D.C., and London.
AKA balances the style
and hospitality of an intimate hotel with the space and comfort of a
fully appointed luxury condominium. Specializing in stays of a week or
longer, AKA stands for unparalleled metropolitan locations; signature
design; and exceptional business, entertainment and lifestyle services.
“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,”
said 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.”
Prodigy Network has led six
international and U.S.-based crowdfunded projects, raised more than $300
million from 6,200 investors, and is currently developing projects
globally with a projected value of more than $850 million.
Eastdil Secured LLC represented the seller in the transaction.
About Prodigy Network
Founded
in 2003, Prodigy Network specializes in connecting its network of
accredited investors with opportunities to participate in prime
commercial real estate in Manhattan. With its proven crowdfunding model
and use of a third-party fund administrator, Prodigy Network has shifted
real estate investment opportunities and returns – that once were
solely accessible to large investors – to smaller accredited investors.
As the leader of the world’s largest crowdfunded skyscraper BD Bacata,
Prodigy Network has raised more than $300 million from 6,200 investors
globally with a projected value of over $850 million. Prodigy Network is
headquartered in New York City. www.prodigynetwork.com
About Korman Communities
Korman
Communities is a fully integrated real estate company with development,
management and financial capabilities. Korman Communities is comprised
of three residential real estate brands: AKA, ARK and AVE. The
four-generation firm has constructed more than 30,000 single-family
homes, 12,000 apartments and townhouses, as well as 2 million square
feet of industrial and commercial space. www.kormancommunities.com
About AKA
AKA,
a division of Korman Communities, is an innovative and growing
portfolio of luxury serviced residences in prime urban locations
including New York City (4); Philadelphia, Beverly Hills, Washington,
D.C., and London. Across the brand, architecturally inspired, spacious
accommodations offer the privacy of a luxury residence integrated with
hotel services and amenities. While each property is unique and has
distinct resident offerings, all feature AKA brand standards and
amenities such as exclusive evening lounges, cafes, fitness centers;
full-service business centers with meetings space and complimentary
high-speed Internet access; en-suite dining; 24-hour front desk
assistance and dedicated doormen. All suites include top-of the-line,
fully accessorized kitchens, contemporary furnishings, luxurious
bathrooms, meticulous housekeeping and premium cable. www.stayaka.com
Contacts
Prodigy Network Media:
Thea Linscott, 212-920-7057
Thea@relevancenewyork.com
or
AKA Media:
Cassandra Small, 212-868-1900, ext. 393
Csmall@quinn.pr
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