A New York-based real estate firm is accepting Bitcoin as payment for nearly $30 million worth of commercial property in Manhattan.
Magnum Real Estate Group says they’re taking BTC as payment for three ground level shops at a luxury residential project.
The 9,000-square-foot ground-level shops at 385 First Avenue, also known as CODA, are already generating income. They are currently leased by the M&T Bank, the clinic ProHealth and the restaurant Mighty Pita so buyers get access to immediate cash flow.
With Magnum accepting the benchmark cryptocurrency for the sale of the properties, CODA becomes the first major income-generating asset to be offered for sale in Bitcoin, according to the South China Morning Post.
Says Magnum managing partner Ben Shaoul,
“We are a pioneer in Bitcoin transactions and see a path where many more transactions can be done using blockchain.
I expect about two or three additional transactions in Bitcoin this year for Magnum.”
Crypto payment platform BitPay will process the Magnum transactions. The Atlanta-based firm will verify the Bitcoin payment and accept it on behalf of Magnum. It will then convert the BTC into dollars and deposit the funds into Magnum’s bank account the next business day minus a 1% fee.
BitPay chief commercial officer Sonny Singh says that since the price of the properties is in US dollars, the buyer will pay the equivalent in cryptocurrency at the time of purchase.
Based on the current value of Bitcoin at $45,694, the CODA properties are worth 634 BTC.