The current owner of the Chrysler building is offloading a property valued at around $135 million to a blockchain-based real estate firm. It’s expected that the buyers will pay a fifth of the asking price in the form of tokenized securities.
RFR Holdings, based in New York are the new owners of the Chrysler building after purchasing it in early 2019 as part of a joint buying agreement. The firm recently arranged to offload its common stake in Zurich-based corporate building to a real estate agency known as BrickMark, and which has offices in both Germany and Switzerland.
Announcement of the Purchase Agreement
This past Wednesday, BrickMark sent out a presser stating that as per the acquisition agreement, it would be paying 20 percent or a fifth of the asking price in the form of its official BMT security token.
Based on the terms agreed upon by all parties, BrickMark will now own eighty percent of the commercial property. It will also have an option to the shares remaining with RFR, though it has to do so by September 2020. While the selling price has not been made public, experts believe that the tokens are valued at tens of millions of euros.
Stephan Rind, the BrickMark CEO commented on the deal and stated that it was one-of-a-kind, and was so far the largest transaction to involve the use of digital tokens. Stephan went on to add that:
“There has never been a token-based real estate transaction of this magnitude. We are implementing what was once no more than a concept in the real estate industry.”
The commercial building in question is located in Bahnhofstrasse, in its down street area. In this area, the rent per square meter ranges between thirteen thousand and fifteen thousand dollars a year, a figure that makes it among the most affluent shopping areas around the globe.
News reports from 2014 indicate that Swatch Group acquired a property close to that location at an estimated price of four hundred and nine million dollars.