According to the South China Morning Post, Magnum Real Estate Group will sell three ground-floor storefronts worth $29 million as part of a luxury residential project in Manhattan, making it the city’s second commercial property to accept the digital currency.
385 First Avenue, also known as CODA, has almost 9,000 square feet of retail space available. The site is currently occupied by M&T Bank, Mighty Pita, and ProHEALTH Urgent Care.
Buyers, according to the developer, will be able to access immediate cash flow because the apartments are fully built up and actively producing money. Ben Shaol, a Managing Partner of Magnum, a New York-based real estate corporation with a $4 billion portfolio, stated:
“We are a pioneer in bitcoin transactions and see a path where many more transactions can be done using blockchain.”
Bitcoin can be used for future sales.
CODA is now the first substantial income-generating product available to bitcoin aficionados. Shaoul went on to say that depending on the buyer’s preference, any future purchases of the retail premises might be made in digital currency. The company has also sold the other apartments above the retail spaces, some of which were paid for with cryptocurrency.
The properties are valued at approximately 641 bitcoins at the current exchange rate at the time of publication, based on the $29 million appraisals. Shaoul anticipates two or three more bitcoin transactions for Magnum this year, noting interest in Miami penthouses, Manhattan apartments, and Beverly Hills mansions. Georg Chmiel, co-founder and executive chairman of property portal Juwai IQI Group, declared:
“This investment could appeal to any Hong Kong or mainland Chinese buyer holding significant amounts of bitcoin and wanting the stability and cash flow of a long-term leased retail property in New York.”
The transactions will be carried out using BitPay.
Sonny Singh, BitPay’s chief commercial officer, also stated that potential buyers from anywhere in the world, including Hong Kongers and mainland Chinese, can purchase the property. Magnum transactions will be processed by BitPay, the world’s top provider of bitcoin and cryptocurrency payment services.
“The beauty of crypto is that it is a global digital asset; the buyer simply scans a QR code to pay.”
According to Singh, the client makes the purchase in cryptocurrency, and BitPay validates and receives the money on Magnum’s behalf. The funds are sent into Magnum’s bank account the following business day, less a 1% fee, and the consumer pays a bitcoin spot rate at the time of purchase because the price is fixed in US dollars.
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