Manhattan Real Estate Worth $36.5-M To Be TokenizedNov 14, 2018 at 0:08
Blockchain startup Fluidity and broker-dealer Propellr have teamed up to create tokens that will be taken as shares to multimillion-dollar block of condos in Manhattan, New York.
The partnership between the blockchain-focused startup and a broker-dealer firm will lead to an offering of tokens that will be used to buy shares in the $36.5 million block of condos.
This will allow more investors to take a slice of the property instead of having only one enjoy each of the 12 luxury apartments
“Literally 25-30 million people can own a piece of this at a dollar a pop. When has that ever been possible?” Ryan Serhant, one of the team’s real estate agents, told Bloomberg.
The tokens will be issued on a blockchain so as to achieve utmost transparency, security, and efficiency.
The team behind the concept also believes that tokenizing the assets would help the companies be able to see a faster rate to in generating sales, hence, be able to start repaying loans allocated for the construction and development of the Manhattan project.
“We have a bank deadline on us where we have to sell a certain amount of units or repay the entire loan by a certain date. If construction has been delayed, if the market turns, if competition pops up, and we’re not gonna be able to hit that deadline, what do you do? So, by tokenizing the debt it gives everyone breathing room to sell at a normal pace with the market instead of against it,” Serhart said.
The traditional property buying process was perceived as fraught with unnecessary middlemen, hence lengthening the process toward an actual while also threatening late payments for loans.
Tokenization, however is not new and has been applied in other expensive items such as artwork.