Bitcoin-Exclusive Commercial Real Estate Offer In New York Listed For $29 Million

2021-11-15 14:43:56

Topline

A set of retail condos in New York City is selling for $29 million exclusively in Bitcoin, signaling a growing trend of luxury real estate purchases being made using cryptocurrency.

Key Facts

Three retail condos totalling 9,000 square feet in Manhattan’s Gramercy Park are being listed by Magnum Real Estate Group, with Bitcoin being the only accepted form of purchase, according to Yahoo! Finance.

A sale would be processed by BitPay, a Bitcoin payment service provider that will receive the cryptocurrency payment and convert it to dollars, allowing Magnum to receive the purchase in cash.

The transaction would be completed the following business day rather than the normal 30-90 day settlement period.

Bitcoin hit its all-time high of nearly $69,000 last week, and Magnum Real Estate managing partner Ben Shaoul said he expected some crypto owners will begin to want to diversify their investments.

Surprising Fact

About 32% of BitPay’s processed volume in October came from luxury purchases like real estate, along with jewelry, gold and yachts, with the figure rising, the company told Yahoo! Finance.

Key Background

While the Bitcoin-exclusivity of the listing is unique, cryptocurrency transactions have been prevalent in real estate since at least 2014. Bill Zielke, chief marketing officer of BitPay, told Yahoo! Finance the company has been processing crypto-based real estate transactions for years, working with both international and U.S. buyers, lately focusing on luxury properties like ski homes. Earlier this year, a $22.5 million Miami penthouse was sold to an unknown buyer using cryptocurrency, marking what was the largest known sale of a residential home using a digital coin.

Crucial Quote

“There is strong pent-up demand for cryptocurrency transactions that are seamless and secure for both parties,” said Alex Sapir, one of the developers of the Miami penthouse. Real estate purchases made using cryptocurrency are done on the blockchain, meaning they are encrypted, secure and there are no banks or traditional pay wires involved.

Tangent

Earlier this year, DJ David Guetta gave potential buyers for his $14 million Miami luxury condo the option to purchase in either Bitcoin or Ethereum.

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