new yorks first real estate project financed though crowdfunding is set to open marking a step forward for a nascent investing model that has yet to prove itself in commercial property aka united nations an extendedstay hotelcondominium will start taking guests from september 10 sales of the suites have already begun of the 95 million it cost to buy and fix up the existing hotel 12 million was raised from online pledges until now everything has been about promises said rodrigo nino chief executive officer of prodigy network which is gutrenovating the building with partners real estate crowdfunding in which participants chip in as little as 100 in some cases for a stake in a property has struggled to establish its bonafides in a market where theres no shortage of institutional capital especially in places like new york the movement was spurred by the 2012 jumpstart our business startups act which eased rules for sales of some investments this year crowdfunding for commercial real estate will more than double to 257 billion research firm massolution estimated in march which is a tiny fraction of nationwide sales volume which totaled 2551 billion in the first half the attention crowdfunding has received is out of proportion with its market share said sam chandan president of nybased chandan economics a provider of real estate data and analysis for real estate the crowdfunding process is more complicated investors typically must be accredited documenting their ability to take risks often by presenting tax returns at aka un a block and a half west of the general assembly building prodigy is marketing 95 onebedroom condos priced from 12 million to 15 million the units ranging from 562 to 662 square feet all with kitchens and most with a balcony will be rented as extendedstay hotel suites until they find buyers the crowdfunding campaign drew 116 backers pledging 20000 each they can expect a return on their investment of 19 to 23 mostly from sales of the units