On this episode of Bisnow Reports, we discuss the ongoing saga of Nightingale Properties and CrowdStreet — the two companies at the center of crowdfunding real estate deals that resulted in millions of dollars allegedly being embezzled.
Bisnow’s Jarred Schenke and Ethan Rothstein talk over the botched deals that saw around $60M of investor money disappear, which have resulted in the Department of Justice investigating after nearly $40M of equity raised on CrowdStreet was allegedly diverted into accounts controlled by Nightingale CEO Elie Schwartz.
Nightingale raised the money to acquire a huge office complex in Atlanta and renovate an office building in Miami Beach, but it never closed on the deals.
An independent manager took over the Nightingale accounts and found that nearly all of the $63M raised was missing. She said she is now pushing to get a settlement.
On the show, we discuss the spotlight that is now on CrowdStreet and its practices, what could happen next in the unfolding story, and how damaging the fallout could be to the crowdfunding industry in general.
Bisnow's audio series, Bisnow Reports, examines every facet of the international commercial real estate industry — from the murky future of retail and office to real estate’s reckoning with diversity to the effects of climate change on the built world, and so much more. You can subscribe on iTunes, Spotify and Amazon Music, or click below to listen in your browser.
