On May 27th, $22.5 million of data heat, zeros, and ones quietly shifted across the financial landscape, transferring ownership of a shiny, new 5,067 square foot, full floor, four-bedroom penthouse in Miami Beach’s newest, uber-exclusive boutique condo building—Arte by Antonio Citterio—in the city’s tony Surfside neighborhood one floor down from Jared Kushner and Ivanka Trump.
At $4,440.50/SF, the deal broke every previous Miami Beach record for price per square foot. Yet it raised more eyebrows for what it didn’t do: close in American dollars.
The 9th floor Lower Penthouse at Arte was bought all cash paid for entirely in cryptocurrency, making it the most expensive known residential crypto real estate transaction in the U.S. to date. The blockchain deal also took less ten days to close from start to finish, setting additional records on time across the finish line for both buyer and seller (the buyer remains anonymous as does the specific cryptocurrency used, all of which are under confidentiality agreements)
For the real estate industry writ large, the deal at Arte sends a much louder message about the future: crypto is here to stay and agents and brokers better buckle up or get left behind.
That residential real estate and cryptocurrency would eventually converge for Arte’s developers, Alex Sapir and Giovanni Fasciano, was always an economic inevitability.
As far back as 2014 crypto buyers and sellers already were closing real estate deals in Bitcoin to move their newfound wealth into more stable and traditional asset classes, albeit infrequently and without much fanfare. What Sapir and Fasicano saw back then just before conceiving of Arte was that the viability of—and demand for—cryptocurrency’s decentralized payment system in the real estate market had the wider ability to transform the way the entire industry does business as a whole.
Their recent deal at Arte seven years later has proved their instincts right. In less than two weeks after announcing that they would be accept cryptocurrency for sales at Arte in mid-May, they had half a dozen offers for the Lower Penthouse and a signed contract.
Real estate’s newfound bullishness on crypto isn’t simply limited to developers like Sapir and Fasciano either. Start-ups like Propy that streamline closings through automated processes have supported cryptocurrency transactions for years, and now offer training courses for realtors and brokers to become “Crypto Certified”. Last month Los Angeles-based Caruso, one of the city’s largest developers, announced that it would begin accepting rent payments in cryptocurrency across both its retail and commercial properties, making in the largest U.S. real estate company to embrace digital currency. And most recently, London’s most expensive penthouse at One Hyde Park listed for $244 million with the option to buy in crypto (or 4,300 Bitcoins at the current exchange rate to be exact), which if sold that way would make in the largest known crypto real estate deal in the world.
Source: Forbes Crypto