New York Bitcoin Exclusive Commercial Real Estate Offering Listed for $29 Million

Topline

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

Highlights

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

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

The transaction would close the next business day instead of 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 expects some crypto owners to start wanting to diversify their investments .

Surprising fact

About 32% of the volume processed by BitPay in October came from luxury purchases like real estate, as well as jewelry, gold and yachts, with that figure increasing, the company said. Yahoo! Finance.

Key Context

Although the listing’s Bitcoin exclusivity is unique, cryptocurrency transactions have been prevalent in real estate for at least 2014. Bill Zielke, Chief Marketing Officer of BitPay, said Yahoo! Finance the company has been dealing with crypto-based real estate transactions for years, working with international and US buyers, recently focusing on luxury properties like ski homes. Earlier this year, a $22.5 million penthouse in Miami was sold to an unknown buyer using cryptocurrency, marking what was the biggest known sale of a residential home using a digital coin.

crucial quote

“There is a strong pent-up demand for transparent and secure cryptocurrency transactions for both parties,” said Alex Sapir, one of the Miami penthouse developers. Real estate purchases made using cryptocurrency are made on the blockchain, which means they are encrypted, secure, and no banks or traditional payment wires are involved.

Tangent

Earlier this year, DJ David Guetta gave away potential buyers for his $14million Miami luxury condominium the option to buy Bitcoin or Ethereum.

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