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Nightingale Under Pressure to Unwind Crowd Funded Deal
Nightingale Group agreed to buy the Atlanta Financial Center last summer for $182 million. Of that, Nightingale launched an investment offering via crowd funding platform CrowdStreet with an estimated raise of $16 million.
Smaller investors had an opportunity to be a part of the deal, and demand exceeded expectations. More than $53 million was raised from 772 individuals. However, the deal on the 915,000-square-foot Buckhead office complex still hasn’t been completed.
With the deal still not closed, CrowdStreet is trying to get Nightingale to unwind the deal and return the money that’s been collected from investors. Nightingale has told investors it’s trying to negotiate a reduced price with the seller, Sumitomo. It has requested until the end of the month to set up a renegotiated sale.
Nightingale agreed to appoint a new independent manager, Anna Phillips. Phillips was approved by the fund’s investors and is now reviewing the financials.