Three retail condominiums at 385 First Avenue are up on the market for $29 million. There’s only one catch: solely Bitcoin will likely be accepted.
Magnum Actual Property Group is promoting the property — often known as CODA — in partnership with brokerage Meridian Funding Gross sales and Bitpay, a cryptocurrency cost service, which can course of the transaction.
The condos cowl 9,000 sq. ft and are totally leased by ProHealth, Mighty Pita and M&T Financial institution. Two of the three leases had been executed throughout the pandemic.
“We consider given the traits within the markets, this can be a nice alternative to introduce actual property, money move actual property, to buyers in cryptocurrencies who need to diversify their investments,” mentioned Ben Shaoul, managing accomplice of Magnum Actual Property Group.
Magnum has been bullish on cryptocurrency lately, together with Shaoul’s 2019 sale of an Higher East Facet retail condominium for $15.3 million in Bitcoin. As early as 2022, Shaoul mentioned, he expects between 5 to 10 p.c of Magnum’s offers to be transacted utilizing cryptocurrency.
Gross sales utilizing alternative types of cost entice new patrons into the market, Shaoul mentioned.
“It’s nice to see new patrons, and new buyers who’re enthusiastic about studying about actual property as an alternative funding,” Shaoul mentioned.
The digital property have minted a brand new class of millionaires lately, a few of which have used crypto so as to add luxurious actual property in sizzling markets like Miami and New York Metropolis to their portfolios, The Real Deal’s Isabella Farr previously reported. Although notoriously risky, fashionable cryptocurrencies like Ethereum and Bitcoin additionally maintain the likelihood for large spikes in worth that would spark pots of wealth too massive for brokers to disregard.
“Cryptocurrency is a type of the treasury going ahead,” Shaoul mentioned. “It’s not going anyplace.”