A property in the Financial District that was once part of Prodigy Network’s crowdfunded portfolio has recently been sold for $64.5 million. The building, located at 17 John Street, was purchased by a LLC linked to Housing Solutions, a firm specializing in furnished corporate apartment rentals. Vanbarton Group, which foreclosed on the property in 2021, completed the sale.

Prodigy Network, founded by Rodrigo Niño, had used the property as a co-working and co-living space called The Assemblage John Street. Prodigy Network was notable for attracting retail investors, particularly from South America, who collectively invested over $50 million in equity for the building. Despite these substantial investments, the project struggled financially, failing to break even for about a year after its opening in April 2018. Though it eventually turned a profit in the second quarter of 2019, the income still fell short of expectations.

Rodrigo Niño passed away in 2020, and Prodigy Network’s financial difficulties continued to escalate. Investors began filing lawsuits, claiming they had been misled about their investment returns.

Vanbarton Group, the mezzanine lender, took control of the property in a deal valued at $83 million. The building, more recently used for short-term rentals, was then sold to Housing Solutions, although details on the future plans for the property remain unclear.

The sale of 17 John Street marks the end of a turbulent chapter for the building and reflects the broader challenges and risks associated with real estate crowdfunding. Despite the initial promise and significant fundraising success, Prodigy Network’s experience serves as a cautionary tale about the potential pitfalls of such investment strategies.