Magnum Actual Property Group Accepting Bitcoin for Gramercy Park Retail Sale – Business Observer


Magnum Real Estate Group plans to simply accept bitcoin as a cost choice for the sale of three ground-floor retail retailers at 385 First Avenue, price about $29 million.

The retail areas, which cover 9,000 square feet in total, are leased to M&T Financial institution, eatery Mighty Pita and clinic ProHEALTH Pressing Care, South China Morning Submit reported. Meridian Funding Gross sales is the brokerage agency representing Magnum within the deal.

The choice to simply accept the cryptocurrency as cost is way from the owner’s first. Ben Shaoul, who heads the true property group, offered an Higher East Facet retail condominium at 389 East 89th Avenue for $15.3 million in bitcoin in 2019, The Actual Deal reported.

“We’ve been bullish on cryptocurrency for a few years having transacted the sale of a retail condominium on the Higher East Facet and a number of other condominiums in Bitcoin,” Shaoul mentioned in an announcement.

Shaoul advised SCMP that he expects two or three transactions to shut in bitcoin for his agency this 12 months, potentially including luxury homes in New York Metropolis, Miami or Beverly Hills. 

Miami has been a preferred vacation spot for cryptocurrency offers, buying and selling platforms and conferences. Town hosted round 50,000 folks for its Bitcoin Convention in June, and attendees noticed a rash of COVID-19 cases within the following weeks. Miami’s condo market has opened up to cryptocurrency purchases as nicely.

Different actual property corporations have additionally jumped on the crypto practice. WeWork started accepting various cryptocurrencies from members as cost for his or her workspaces in April, whereas KPG Funds arranged to let its office tenants use cyptocurrency USD Coin for hire in June.

The worth of the potential sale of Magnum’s retail properties is ready in U.S. {dollars}, which means a purchaser pays regardless of the price for bitcoin is on the time of buy, South China Morning Submit reported. 

As of publication, $25 million can be about 539 bitcoins. However that quantity can fluctuate drastically, as the value of bitcoin is understood for fluctuating on the drop of a hat. To this point this 12 months, the value of a single bitcoin ranged from below $30,000 to nearly $65,000, CNBC reported.

Celia Younger might be reached at cyoung@commercialobserver.com.

Replace: This story has been up to date to incorporate feedback from Magnum Actual Property Group.

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