This Prodigy Project Outlived the Now Bankrupt RE Crowdfunding Platform

Hello GowerCrowders!

Spring is a time for new beginnings, and as the commercial real estate (and crowdfunding) world is in a state of flux, it would be good to remember that spring always comes after winter.

This week, I’ve got a lot in store for you, including the Skyway Industrial Park by the Wideman Company at RealtyMogul and Ridgeline View Townhomes from RM Communities. I’ve also got a look at a new crowdfunded 41-story West Loop Apartment Complex approved by the Chicago City Council, a look at the new CrowdStreet REIT I on iCapital, our exclusive weekly SEC Filing Data, and a look at my latest podcast, where I speak with Ben Reinberg of Alliance CGC. 

Let’s get into it. 

New Crowdfunding Platform Deals

First up is the Skyway Industrial Park by the Wideman Company at RealtyMogul. This Florida-based industrial asset sits along the I-275 corridor in the Tampa/St. Petersburg MSA in Pinellas County. The project is not yet open, but is coming soon, and offers investors a target IRR of 16.7%-18.7%, a target average cash on cash of 6%, a target equity multiple of 1.84x and an estimated hold period of 4 years. 

Take a look at this new project on RealtyMogul, here.

Next up is the Ridgeline View Townhomes, also on RealtyMogul. These townhomes sit on the border of Oregon and Washington, just across from Portland, OR in Vancouver, WA. As of the writing of this newsletter, the project is 66% funded. These multifamily townhomes have a target IRR between 16.5 and 18.5%, a target average cash on cash of 7.7%, a target equity multiple of 1.56x, and an estimated hold period of 3 years. 

Check out this new development of luxury four-bedroom townhomes on RealtyMogul, here.

General Crowdfunding Industry News

A crowdfunded project in Chicago’s West Loop that was initially set to be a hotel is now in development to be a high-rise apartment building. The Chicago City Council approved the change last Wednesday, in a big change for the property. The project was originally funded through now bankrupt crowdfunding platform Prodigy, which is currently facing multiple lawsuits from investors that poured an estimated $690 million into different projects across New York and Chicago. 

The West Loop site, 1234 W. Randolph St was originally going to be “The Standard Hotel,” with 250 rooms, a fitness center, event space, and multiple restaurants and bars. Developers Azur Holdings and Golub and Company now plan to build a 445-foot tower on the site, including 395 apartments- with 79 affordable options, 113 parking spots, and 290 bike parking and storage spots. 

Learn more about this upcoming Chicago multifamily project that rose from the ashes of Prodigy Network on Block Club Chicago, here.

Crowdfunding Platform Updates

CrowdStreet Advisors made a big announcement last week with the launch of the CrowdStreet REIT I (C-REIT) with iCapital. CrowdStreet Advisors, a subsidiary of CrowdStreet, provides investment advisory services to privately managed accounts and private funds. iCapital is an alternative finance platform for the wealth management industry. 

The C-REIT will invest in commercial real estate projects globally and requires a minimum investment of $25,000. iCapital’s network of over 16,000 wealth advisors can offer the C-REIT to their clients. As of March 31, 2023, CrowdStreet Advisors manages $497 million in client assets, and as of November 30, 2022, iCapital services over $149.3 billion in global client assets.

Get the rest of the scoop on Crowdfund Insider, here.

SEC Filings Graphs

In Week 16, we observed an increase in both the total number of Reg D (b) deals and Reg D (c) deals compared to Week 15. The total number of deals for Week 16 amounted to 35, with 26 Reg D (b) deals and 9 Reg D (c) deals. The total amount being raised in Week 16 reached $0.78 billion, up from $0.54 billion in the previous week. 

Texas took the top spot for both number of deals with 78 deals and the amount of dollars raised, $0.22 billion. As is often the case, most  deals last week were small with 18 coming in at less than $10 million, 5 coming in between $10 and $50 million, 7 at more than $50 million, and 5 undetermined. Access GowerCrowd’s exclusive SEC Filing Data on my site, here.

Multimedia Links (Videos, Podcasts, etc.)

Let’s dive into our latest podcast episode, where I had the pleasure of speaking with Ben Reinberg, Founder and CEO of Alliance Consolidated Group of Companies. Ben is the leading expert in medical office building syndications in the U.S., boasting a portfolio exceeding $500 million in assets throughout his 26-year career.

Ben’s unwavering focus and entrepreneurial drive are truly inspiring. In the past two to three years, while simultaneously building Alliance, he has launched his personal brand to complement Alliance, established a $50 million fund, and initiated an extensive real estate crowdfunding program to attract new investors to his business and asset class.

This week’s episode is packed with motivational insights and valuable information about Ben Reinberg’s success in the world of medical office building syndications. Don’t miss this opportunity to learn from one of the industry’s top experts!

If you’re eager to discover the secrets behind Ben’s success, head over to GowerCrowd to listen to my captivating podcast with Ben Reinberg, the mastermind behind Alliance Consolidated Group of Companies.

That’s it for now- but I’ll see you soon with even more real estate crowdfunding news, new deals, platform updates, podcasts, and more! Until then!