Magnum Real Estate Group will sell three ground-floor stores valued at $29 million as part of a luxury residential project in Manhattan, making it the latest commercial building in New York City to accept the digital asset, according to the South China Morning Post.
More than 9,000 square feet of retail space is available at 385 First Avenue, commonly known as CODA. M&T Bank, Mighty Pita, and ProHEALTH Urgent Care are all presently using the property.
According to the developer, buyers would be able to access instant cash flow because the units are entirely built out and currently earning money. Managing partner of Magnum, the New York-based real estate firm with a $4 billion portfolio, Ben Shaol stated:
“We are a pioneer in bitcoin transactions and see a path where many more transactions can be done using blockchain.”
Future sales can be made in bitcoin
With this step, CODA becomes the first significant income-generating asset available to bitcoin enthusiasts. Shaoul added that buyers might make any future sales of the retail premises in the digital currency depending on the buyer’s choice. The company has also sold the other apartments above the retail spaces, with some paid for in cryptocurrency.
Based on the $29 million valuations, the properties are worth roughly 641 bitcoins at the current exchange rate at the time of publication. For Magnum, Shaoul expects two or three more bitcoin deals this year, citing demand in Miami penthouses, Manhattan apartments, and Beverly Hills estates.
Co-founder and executive chairman of property portal Juwai IQI Group, Georg Chmiel, declaring:
“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.”
BitPay to carry out the transactions
Sonny Singh, the chief commercial officer of BitPay, also claimed that potential purchasers from anywhere, including Hong Kongers and mainland Chinese, can acquire homes. BitPay, the world’s leading supplier of bitcoin and cryptocurrency payment services, will execute Magnum transactions.
“The beauty of crypto is that it is a global digital asset; the buyer simply scans a QR code to pay.”
As Singh explains, the client makes the purchase in crypto, and BitPay validates and receives the payments on behalf of Magnum. The money is transferred into Magnum’s bank account the next working day, minus a 1% fee, and the customer will pay a bitcoin spot rate at the moment of purchase because the price is fixed in US dollars.