Nightingale Properties, a commercial real estate investment firm, has agreed to sell a Miami office building for $82 million to a pair of Miami-based investors. The sale comes after Nightingale CEO Ben Shaoul was accused of misappropriating capital from CrowdStreet investors who had invested in the building's renovation.
The building, located at 1601 Washington Avenue in Miami Beach, Florida, was purchased by Nightingale in 2016 for $80 million. In 2022, Nightingale launched a crowdfunding campaign on the investment platform CrowdStreet to raise money for the building's renovation. The campaign raised $8.8 million, but the fund-raise deal never closed, and investors, who had to commit at least $25K, never received their money back.
In January 2023, the Securities and Exchange Commission (SEC) charged Shaoul with fraud and misappropriation of investor funds. The SEC alleged that Shaoul used investor money to pay for personal expenses and to invest in other ventures. Shaoul has denied the allegations and has pleaded not guilty to the charges.
The sale of the Miami office building is part of a settlement agreement between Nightingale and CrowdStreet investors. Under the terms of the settlement, Nightingale will pay back the $8.8 million that it raised from CrowdStreet investors. The settlement also requires Nightingale to sell the Miami office building and to distribute the proceeds to CrowdStreet investors.
The sale of the Miami office building is a positive development for CrowdStreet investors. It means that they will finally be able to get their money back, even though they will not be able to earn the returns that they were promised.
The sale of the building is also a sign that Nightingale is trying to make things right with its investors. The company has been facing a number of challenges in recent years, including the SEC's investigation into Shaoul's conduct. The sale of the Miami office building is a sign that the company is trying to put its past behind it and move forward.
Here are some additional thoughts on the implications of Nightingale's agreement to sell the Miami office building:
The sale is a positive development for CrowdStreet investors. It means that they will finally be able to get their money back, even though they will not be able to earn the returns that they were promised.
The sale is also a sign that Nightingale is trying to make things right with its investors. The company has been facing a number of challenges in recent years, including the SEC's investigation into Shaoul's conduct. The sale of the Miami office building is a sign that the company is trying to put its past behind it and move forward.
The sale of the building is also likely to have a positive impact on the Miami real estate market. The building is located in a prime location in Miami Beach, and it is expected to be attractive to buyers from around the world.
However, it is important to note that the sale of the building does not mean that the SEC's investigation into Shaoul is over. Shaoul is still facing criminal charges, and he could be convicted and sentenced to prison.
Overall, the sale of the Miami office building is a positive development for CrowdStreet investors and for the Miami real estate market. However, it is important to note that the SEC's investigation into Shaoul is still ongoing.
