$30 Million Condo Building In East Village Manhattan Tokenized On Ethereum Blockchain

A 12 unit condo development has been tokenized on the Ethereum blockchain, becoming the first real estate asset in Manhattan to find a home on the blockchain.

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A 12 unit condo development has been tokenized on the Ethereum blockchain, becoming the first real estate asset in Manhattan to find a home on the blockchain.

The East Village building on 436 & 442 E 13th Street consists of 12 condos, each measuring 1700 sq ft and was recently valued at over $30M.

Sell It Like Serhant author Ryan Serhant brokered the deal, teaming up with the property’s developers Vail Associates Architects and the Amirian Group to explore blockchain as a new financing method and investor tool.

The bestselling author believes that the technology presents them with an attractive financing method, one that could be of great benefit to the project and its investors.

Tokenization means that the luxury property as a whole is representative of tokens, which investors can now buy on the blockchain. Having the property in tokens is essential as it allows the developers to assign a value to portions of the building.

This approach, according to the Serhant, will allow more people to invest in the in the condos without the discrimination of having had to fork out vast sums of money. It has always been complicated for small investors to invest in luxurious real estate property.

Tokenizing the asset also takes away the pressure that comes with dealing with traditional financial institutions. New York is a robust market for real estate, but finding buyers sometimes proves difficult.

Further, international buyers often face many hurdles when buying properties overseas, something tokenizing a property can greatly simplify.

While commenting on the development, Serhant told Forbes that:

“With blockchain tokenization, we can remove the unruly pressure of traditional bank financing, which is much healthier for the project and all of the stakeholders. Tokenization is paving the way for a new forefront in real estate development.”

Digitizing the property on the Ethereum blockchain is the result of the combined efforts of two firms- Propellr and Fluidity.

Propellr is a digital assets company, FINRA-registered, and a regulated broker-dealer. The firm operates under the Reg D rule 506 (c) and will hope to leverage its vast capital markets experience to offer both traditional and tokenized securities.

Fluidity, on its part, is a company that specializes in tokenization of “real world” assets, offering tech services to firms that deal with tokenized securities.

Fluidity is the creator of Airswap and has a significant role in helping Propellr to comply with legal requirements as it accepts payments for securities in fiat money

With common interests in tokenization, the two firms seek to continue collaborating on projects that bring digitally held assets to the market.

According to Fluidity co-founder Michael Oved, the development presents an opportunity to take a leading role in the use of blockchain. He said:

 “Going to market with a landmark deal allows us to make a statement—that this technology is now real. With the right partners and an optimized structure, we are bringing a major real-world asset online.”

Tokenization has the potential to revolutionize the investment industry by making it possible to tokenize virtually anything that has real-world value.

Having such assets tokenized increases liquidity, providing smaller and disadvantaged investors with an opportunity to get into markets like real estate and other high-end investments like global debt markets and classic art.

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