Magnum Real Estate Group has listed its block of retail condos at 385 First Avenue for Bitcoin.
The offering – valued at $29 million – marks the first major income-producing real estate investment opportunity in the United States for Bitcoin investors.
Meridian Investment Sales is the brokerage firm and BitPay, the world’s largest provider of Bitcoin and cryptocurrency payment services, will process the transaction.
Bitcoin will be accepted for the purchase of the retail condominiums at 385 First Avenue, a new construction luxury residential building in the Gramercy Park neighborhood of Manhattan.
385 First Avenue, also known as CODA, features turnkey fully-leased retail condominiums centrally located on Manhattan’s East Side at the corner of 23rd Street.
The three retail spaces, totaling over 9,000 s/f, contain M&T Bank, Mighty Pita, and ProHEALTH Urgent Care. All three tenants are classified as “essential services” and two of the in-place leases were executed during the pandemic.
“We’ve been bullish on cryptocurrency for many years having transacted the sale of a retail condominium on the Upper East Side and several condominiums in Bitcoin,” said Ben Shaoul, Managing Partner of Magnum Real Estate Group. “Our confidence in the asset class is documented by our decision to keep crypto on our balance sheet and continue to collaborate with BitPay. We have also retained the services of Galaxy as an advisor. We are marketing this Class A retail property for a crypto holder because of its immediate cash-flow and strong return rate.”
This first-of-its-kind investment opportunity features a WALT of over seven years. Annual base rent increases and substantial reimbursements from tenants will benefit investors with durable and secure cash flow and minimal carrying costs. For crypto investors this is a forum to monetize new wealth and create a steady income stream.
“Acquiring stable real estate assets with Bitcoin has never been easier,” said Sonny Singh, chief commercial officer of BitPay. “This landmark offering at 385 First Avenue is a remarkable step forward in proving that crypto is a viable alternative to fiat transactions. We’re thrilled to provide the integration for companies like Magnum Real Estate to quickly and seamlessly process cryptocurrency payments.”
M&T Bank has an ‘A3’ rating by Moody’s, ‘A-’ rating by Standard& Poor’s, and ProHEALTH Urgent Care has an ‘A1’ rating by Moody’s. M&T Bank recently executed an eight-year option commencing on January 1, 2021 and Mighty Pita signed a 10-year lease commencing on April 1, 2021.
Home to New York City’s Medical Mile, Kips Bay contains the city’s highest concentration of medical professionals and medical office space.
Magnum was the first real estate development firm in NYC to accept crypto for its prime real estate offerings. As the adoption of blockchain technology grows and the asset class matures, the firm continues to be at the forefront of transacting in partnership with BitPay.
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