Synapse Development Group, a real estate investment and development firm headquartered in New York City, and its joint venture partner AQARAT (Kuwait Real Estate Company), have launched a crowdfunding campaign on the RealCrowd platform to raise 10% to 15% of the equity for its 203-key Yotel development in the Mid-Market neighborhood of San Francisco. The Partnership has opened the offering to accredited investors and IRAs with for a minimum US$25,000.
“Our team is excited to open an institutional quality investment opportunity to accredited investors in a market as strong as San Francisco,” said Justin Palmer, CEO of Synapse Development Group. “Investors will be able to enjoy the financial benefits of ownership, as well as perks such as discounts, owner-exclusive VIP parties at the rooftop bar, and access to membership benefits at Yotels around the world.”
The hotel will be located at the corner of Market Street and 7th Street in San Francisco’s emerging Mid-Market neighborhood, home to tech giants like Twitter and Uber. It is currently an eight-story, 110-year-old landmarked office building totaling 71,944 square feet. Upon completion – slated for 2017 – the office building will be converted into a nine-story Yotyel with 84,000 square feet of space.
“Crowdfunding is rapidly becoming a serious source of investment capital in hospitality real estate and is consistent with our philosophy of always striving to create opportunities to bring together enthusiastic, energetic, young-at-heart entrepreneurs both as guests and owners of Yotels worldwide,” said Yotel’s Chief Development Officer Jason Brown.