The owner of a mostly vacant 199,675 two-building office project in Houston has opened itself up to Bitcoin bids.
One building at 50 Briar Hollow is completely vacant and the other is 70% empty, the aftermath of tenants’ pandemic-related business setbacks. The complex was developed in 1978-79 and last renovated in 2013.
This is believed to be the first project in Greater Houston marketed to accept Bitcoin.
BDFI LLC, the owner, is taking a cue from where the world is moving and wants to be on the forefront,” says Glenn Dickerson, vice president of locally based NewQuest Properties, the broker. “I’m actively involved in cryptocurrency, so I was really excited that he too believes in crypto. This is a strong endorsement of bitcoin, which the seller is planning to hold and not convert to US dollars as others have done.”
The offer price will not fluctuate with Bitcoin’s volatility, he asserts in a press release.
While one hesitates to call this a trend, there are growing examples of commercial property investments incorporating bitcoin into their strategies.
E11EVEN Hotel & Residences, a luxury high-rise condominium complex set to break ground in Miami this year, will be the first project of its kind to accept cryptocurrency as a form of payment, according to its developers.
Residences start at $300,000 and include studios, one- and two-bedroom apartments, as well as a limited penthouse collection and two presidential suites. The units are nearly sold out.
“We’re depositing the bitcoin into what’s called a stablecoin, which is a crypto platform that takes away the hedge. It just pays you whatever the dollar value of that coin is at the time you deposit it,” says Kevin Maloney founder of national real estate developer PMG which is developing it along with E11EVEN Partners.
Explaining that stablecoin is part of CoinDesk, and Coindesk is depositing cash with the title company Maloney says that meets Florida law.
On the West Coast, 20Mission, a 41-room co-living space in San Francisco owned by early Bitcoin millionaire Jered Kenna is letting people bid on 75-year rights to lease a room for $1 a month using NFTs.
“Originally, I wasn’t going to implement NFTs,” Kenna tells GlobeSt.com. “Then I realized it actually does make sense from an ease-of-use perspective. Of course, the timing is great. Everyone is talking about NFTs at the moment, but it is also indisputable the underlying asset has value. I really don’t want to see these go for something ridiculous like 100 years-worth of market rent. I’m trying to introduce a new way of viewing property ownership and bring liquidity to a traditionally illiquid market.”
In New York’s SOHO district, KPG Funds is letting tenants pay rent in digital currency at 446 Broadway L ‘Atelier.
“We believe that cryptocurrency is here to stay. Tenants have started to ask for this payment solution, and we wanted to be able to satisfy their needs,” says KPG Funds CEO Gregory Kraut in a prepared statement.