Magnum Real Estate to accept bitcoin in sale of Manhattan retail properties in another first for US commercial market
- Buyers will get an immediate cash flow and do not need to invest any more in the spaces because they are already built out, says Magnum
- Potential buyers anywhere, including Hongkongers or mainland Chinese, can buy the properties with bitcoin
The shops at 385 First Avenue, also known as CODA, covers more than 9,000 square feet of space, and are currently leased to M&T Bank, restaurant Mighty Pita, and clinic ProHEALTH Urgent Care. Buyers will get access to immediate cash flow because they are fully built-out and already generating income, the developer said.
The move makes CODA the first major income-generating asset to be offered to bitcoin believers. Any future resale of the retail spaces can be done in the currency, depending on the buyer’s preference, Shaoul said. The firm has also sold all the apartments above the retail spaces, of which some were also paid for in cryptocurrencies.
Based on the US$29 million valuation, the properties are worth about 641 bitcoin based on current exchange rate.