It’s a different strategy, but one that is raising hundreds of thousands of dollars for two downtown Tulsa developments – crowdfunding.
The developers of the Adams Hotel and The Reunion Building, which will be converted into apartments, raised half of their equity through crowdfunding and most of the investors aren’t even from Tulsa.
Ken Brune bought the Reunion Center Building at 4th and Main in 2004 and, almost 15 years later, says now is the time to start his dream project.
“Right in the center, if you can imagine, will be a wading pool,” said Brune.
In April, renovations will begin on the 10-story building, turning it into 80 apartments with a rooftop garden – and not a bad view, either.
“We’ve waited just long enough,” stated Brune. “We have so many things going on in Tulsa in the last 10 years and Tulsa has had a total revitalization.”
From the roof, you can see the Adams Hotel just a few blocks away, which is set to have 65 apartments.
Together, the projects will bring more than $30 million in investment to downtown Tulsa and hundreds of thousands were raised through the internet crowdfunding site Real Crowd.
“They’re connected to us through an online platform and they become our investors,” said Steven Watts from Rose Rock Development. “We know their name, their company, and we know where they live, and communicate with them just like our local investors.”
So far, these projects have excited investors from 11 states.
“They see what happens in Tulsa and some of them have been in Tulsa, some have an Oklahoma connection and they see the momentum and they see it happening in other urban areas, as well,” Watts said.
“There are so many projects that are real and not just in the planning phase,” stated Brune. “They’re out of the ground and about to open and we’re right at the center of it here at 4th and Main.”
Rental rates for the Adams and Reunion apartments will range from about $700 per month to more than $2,000.