Purchasing real property with cryptocurrency may not be a widespread trend yet, but sellers and developers in Miami, Lake Tahoe, Las Vegas and Austin have advertised list prices for houses in both U.S. dollars and bitcoin.
Now developer Coloma River Capital and the Alex Venditti Group of Coldwell Banker Residential Brokerage are marketing four new condos at St. James Place Condos with the option of using bitcoin for the down payment, part of the purchase or all of the purchase.
The four condo units at 1471 Girard St. NW were converted from a single-family home. The units have white oak hardwood floors, soapstone counters, stainless-steel appliances and recessed lighting.
Two one-bedroom-and-den units, on the first and second levels, are priced at $569,000 or 50 bitcoin and at $665,000 or 59 bitcoin. The two-bedroom unit on the third floor is listed at $677,000 or 60 bitcoin; the two-bedroom penthouse, which has a private roof terrace, is priced at $949,000 or 84 bitcoin. The bitcoin prices may need to be adjusted to reflect the negotiated sales price.
“The developers and investors are invested in bitcoin and they pointed out that if you bought $8,700 worth of bitcoin in 2015, the value has increased so much by now that you could afford to buy the entire condo building for $3 million,” Venditti says. “We know there are millennials who may not have the down payment but who invested in bitcoin and could use that for part of the purchase.”
Venditti said he believes this is the first time in the District that bitcoin is being accepted as a form of payment for real estate.
“We want to be on the cutting edge of new technology and the new world and we think we’ll see more cryptocurrency transactions in the future,” Venditti says. “We consulted with our internal legal team as well as a title company to make sure that the bitcoin transaction could go through.”
Venditti suggests buyers who want to use bitcoin should make sure they are fully approved for any additional financing so the transaction can be completed as quickly as possible, since the value of bitcoin fluctuates constantly.
“There will be a clause in the contract to address the issue that both the buyers and the sellers need to accept the risk that the value of the bitcoin could go up or down between the day the purchase offer is accepted and the day the bitcoin transfers from the buyer’s wallet to the seller’s wallet,” Venditti says.
For more information about the St. James Place condos, click here.
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