Top 6 succesful cases of real estate tokenization

1. Elevated Returns gets $18 million for St. Regis Aspen Resort ‘tokenized real estate”

Elevated Returns, a New York-based asset management business, conducted its first tokenization real estate transaction in 2018. On the Ethereum blockchain platform, an $18 million offer was made on the St. Regis Resort in Aspen, Colorado.

The St. Regis Aspen Resort features a 179-room luxury hotel, four onsite food and beverage outlets, and 29,000 square feet of indoor and outdoor convention and event space with views of the Rocky Mountains.

Elevated Returns intended to sell around half of St. Regis Resort as a separate asset at first. The company later decided to offer 18.9% ownership through the sale of tokens.

The successful offering was made available directly through Templum Markets, an SEC-registered operator, for the first round offering and secondary trading of digital assets as securities through its Alternative Trading System (ATS).

St. Regis Aspen has tokenized a portion that they formed as a single asset real estate investment trust (REIT). According to the terms of the deposit agreement, each token will represent an indirect ownership interest in one deposited share of our common stock (the REIT which was formed for St. Regis Aspen). The REIT provides a tax-efficient structure, whereas the blockchain enables peer-to-peer investing and simplifies cross-border transactions for investors.

2. The first-ever real estate deal in Switzerland

A real estate deal including 18 flats on Grabenstrasse 3 in the Swiss city of Baar, as well as a restaurant called "Hello World” was tokenized with a value of around $3.2 million USD.

The total token value was 3 million CHF, approximately around $3.2 million USD, which represents 20% of the total property value. In this project, four investors purchased all tokens in a club sale in four distinct transactions on the Ethereum network.

The entire transaction was essentially a Security Token Offering, but the tokens were not linked to a company but represented a property, officially and legally valid under Swiss law.

Swiss Crypto Tokens AG, a subsidiary of Bitcoin Suisse, provided its stable coin CryptoFranc (XCHF) to support the transaction. The coin is pegged to the Swiss Franc and enabled the transaction partners to avoid volatility risks.

3. New York City’s first luxury property to be tokenized on the blockchain

A luxury Manhattan condo development is getting a new digital home on the worldwide Ethereum blockchain. 

The building, a completed 12-unit construction with 1700 sq ft units located on 436 & 442E 13th St in the East Village, was the first major asset in Manhattan to be tokenized on Ethereum. The property had been appraised at more than $30M. Condominiums are going for exaggerated prices and there is usually a long process behind the purchase of them, but not with cryptocurrencies.

Investors will have the option of receiving either analog or digital interests in the securities, which should cover all bases for potential buyers of the transaction. Not only made profits from trading tokens but also the investors earned a regular rental income due to the high demand of New York City’s tenants.

4. $135M Swiss property deal

A building located on Bahnhofstrasse in the heart of Zurich worth $135 million has been tokenized.

Property in a prime location on Bahnhofstrasse - floor space expansion planned. The property acquired by BrickMark is located at Bahnhofstrasse 52 in the heart of Zurich, in the central business district of one of Europe's most important financial hubs, nearby to one of the world's most exclusive and most prestigious luxury shopping boulevards. The property has a large working space which is more than 1,600 square meters. Most of this is currently used by office tenants, with only about 15%  along the ground floor level being used by retailers. 

The transaction volume amounts to over CHF 130 million. The seller of the property is the international real estate investor RFR Holding GmbH ("RFR"). RFR has remained a 20% shareholder in Bahnhofstrasse AG and led the redevelopment process. 

5. Europe completed its first-ever blockchain real estate sale for €6.5 million

The AnnA Villa in Paris made history when it became the first European property to be sold fully through a blockchain transaction.

The luxury building, located in the city’s Boulogne-Billancourt district, was valued at €6.5 million and was sold to French real estate companies, Sapeb Immobilier and Valorcim. The procedure began with the transfer of ownership of the building to a joint-stock company (SAPEB AnnA), followed by the division of the firm into 100 tokens to be awarded to the owners in turn. Each token was subdivided into 100,000 units, with each individual share in the building then being traded for €6.50.

This tokenized case was powered on Ethereum and was the latest of several worldwide efforts to bring real estate sales onto blockchain technology

6. Historical Lueneburg Building raised successfully 1.5M through real estate tokenization.

The historical building, located in the heart of Lueneburg's beautiful Old Town, with various retailers, cafés, and small restaurants just around the corner was first mentioned in 1342.

The case was conducted successfully as the Lüneburg community raised $1,500,000. The Lueneburg Token case managed to target diverse investors who had various investing preferences.

It has helped the building preserve a part of its heritage and investors also profit from the interest rate p.a of 5%.

As can be seen from the many tokenized real estate cases above, this new paradigm has proven the technology is now real and brings a major real-world asset online. The use-cases for blockchain implementation seem to be limitless. As this technology becomes more widely used, the incorporation of smart contracts will enable the tokenization of assets, among other significant benefits.

Tokenization, therefore, liberates potential in both worlds. Tokenization not only results in a large number of individuals participating in a real estate project, but the tokens may also be maintained and increased in value as the property appreciates, and even sold to the public.

Realbox is a pioneering blockchain-driven real estate platform that will innovate property investment by offering opportunities to everyone to co-invest in a fraction or share of assets. Follow Realbox to discover more about real estate tokenization and investment opportunities:https://linktr.ee/RealboxOfficial