We are pleased to inform that our fifth real estate crowdfunding campaign for investment in Manhattan is now available. The Assemblage/Park Avenue South is an institutional-quality commercial real estate project that follows the concept of coworking spaces and will generate double-digit returns.
For the crowdfunding stage we will raise US $53 million, which will be allocated to the acquisition and renovation of a 37,000-square-feet property located at 329–331 Park Avenue South, in the heart of NoMad. As one of Manhattan’s most thriving neighborhoods, NoMad is easily accessible as it conveniently connects to surrounding residential and business neighborhoods. NoMad is home to renowned restaurants such as Eataly and 11 Madison Park, as well as other leading companies which are part of the city’s so-called technological boom. Read more about NoMad at: The New York Neighborhood that Attracts Real Estate Investors
Coworking spaces provide flexible work environments and can be rented on a daily, weekly, or monthly basis. Members share a physical and virtual space as well as the equipment and services of a regular office. Globally, this segment grew 85% between 2011 and 2015, mainly in highly competitive real estate markets like New York City. Coworking spaces in New York tend to be more attractive to tenants than traditional offices. This is due to the latter’s inflexible rental conditions (rental agreements are usually made for a minimum term of one year) and the high cost of traditional office rents (the average annual rent for a 300-square-feet office on Park Avenue in Manhattan is approximately U.S. $30,500). Learn more about coworking spaces.
The Assemblage will offer a physical and virtual platform where members can benefit from plurality, community, networking, and collaboration. This will generate an environment that’s consistent with the undergoing transformation in the work force, which is showing a surge in independent workers and entrepreneurs. Additionally, traditional corporations are hiring remote teams more and more frequently. This is especially relevant in the United States, where it’s estimated that 30% of the population works independently; this rate is expected to increase to 50% by 2020.
This new kind of office space is particularly attractive to the generation known as millennials. According to FTI Consulting, 35% of coworking members are millennials. This generation makes up the largest segment of the U.S. work force; an estimated 45 million millennials are employed, and 1.6 million reside in New York. This statistic is an indicator of the potential user base this type of space has in the Big Apple.
The Assemblage/Park Avenue South will be Prodigy Network’s third property dedicated to coworking. We are currently finalizing the last phase of the crowdfunding campaign for The Assemblage/25th Street, which is in its pre-construction stage, and The Assemblage/17 John, located in the Financial District, is under construction. Coworking members will have access to these Manhattan properties as soon as the projects come to completion.
With this offer, and having raised almost US$ 200 million for our four Manhattan projects, we continue to be the leading real estate crowdfunding platform in the United States. Investors drawn from 26 different nationalities and from 27 North American states have been attracted by this opportunity to invest –from as little as US$ 50,000– in one of the most profitable markets in the world.