New York-based Prodigy Network has closed the first round of equity funding for a seven-story multifamily building in the Old Town neighborhood, its inaugural project in Chicago. The $22 million raised will facilitate property acquisition and predevelopment costs for the project at 1400 N. Orleans Street, Old Town Residences, which moves to begin construction in second quarter 2019.
“We are excited to announce this latest milestone,” said Rodrigo Niño, Prodigy CEO and founder. “Our expansion to Chicago is the next phase in Prodigy Network’s gateway city strategy, and proves the appetite within our ever-growing investor network for well-vetted opportunities beyond the New York market. This funding highlights Prodigy’s success at preparing and marketing unique institutional-quality, single-asset-backed opportunities to investors.”
Prodigy, a decentralized global network of private capital raised the funds from investors across 43 countries, including 29 U.S. states and territories. The project is a joint venture between majority capital partner Prodigy, Ruttenberg Gordon Investments, Marc Realty Capital LLC and Joe McMillan of DDG, who will manage the development and milestones of the project. Total capitalization for the project will be $43 million of equity and $52 million of senior debt financing to be closed in Q2, for a total project cost of $95 million.
With a 2020 targeted opening, the 255,000-square-foot luxury apartment building will have 254 units, a parking garage, 24-hour doorman, rooftop pool, sun deck, hot tub and green areas, business center and fitness center, among other amenities. It is located in Old Town, a fast-growing neighborhood just 10 minutes from downtown Chicago via two CTA stations covering three lines.
“The location is ideal for a Class A apartment building,” said Chicago-based investor David Ruttenberg, principal of Ruttenberg Gordon Investments and Marc Realty Capital. “Tenants can walk to multiple grocery stores, the many Wells Street and Old Town bars and restaurants, great fitness options and the entertainment concepts including the world famous Second City.”