Vanbarton Group has taken control of a FiDI hotel at 84 William Street, which was backed by investors through defunct crowdfunding platform Prodigy Network, according to The Real Deal. Vanbarton won the UCC foreclosure auction through a credit bid, meaning it bid using the debt it was owed.
- Dig Deeper: The lender has now taken an ownership position in the extended-stay hotel, which shut down on Aug. 24. Records filed with the city set the value of the 140-key asset at $73.5 million.
- Backdrop: Of the thousands who invested some $690 million in Prodigy’s projects, many have joined forces in the past year to file at least 13 lawsuits against the company, TRD noted. In late February, Prodigy sent a letter to investors in 84 William Street asking them to contribute $40 million to keep the building afloat, warning them that they could lose their investments in full.
- Worth Noting: Shorewood Real Estate Group was previously linked to the project as Prodigy’s development partner. Korman Communities operated the hotel. [TRD]