LINCOLN PARK — A real estate firm is looking to raise $975,000 to renovate a three-story, 16-unit apartment building at 1955-63 N. Lincoln Ave.
And thanks to a new state law, Standard & Partners can turn to crowfunding to raise the money for the project from investors who might invest as little as $1,000.
The company is using Chicago-based VestLo, which proclaims itself the first Illinois equity crowdfunding portal to take advantage of a new state law allowing as much as $4 million to be raised from small investors able to put up as little as $1,000 apiece.
Backers said the new state law gives small investors a shot at becoming a part of projects normally dominated by deep-pocket developers.
Standard & Partners said the Lincoln Avenue building is going for below-market rents, so it plans to renovate all of the units and then lease them out at higher rents.
Howard Orloff, co-founder of VestLo, said, "This is the first real-estate project to use the new Illinois law, and we couldn't be more happy to have them using our portal to fund this offering."
Other VestLo projects involve Native Sons Chicago and CrossTown Fitness, he said.
Chicago attorney Anthony Zeoli, who helped write the new law, said it actually takes real-estate development out of the hands of deep-pocket investors and opens it to those able to contribute as little as $1,000.
"It is very satisfying to see the new law being used to fund a project of this caliber,” Zeoli said. "For the first time ever, Illinois residents of every kind will have the opportunity to invest in local real-estate projects, including ones like this which have always been reserved for high-net-worth individuals."