Have you heard it? Manhattan’s Chrysler Building which is the iconic structure out there is up for sale. Wondering who shall be the potential buyers? Well, we too as it has been quite difficult after the process of bidding closed.
Moreover, here is why this 77-story structure is an astonishing investment for buyers. We will also discuss about the “tokenization approach” which has the potential to disrupt the industry of real estate. Other than that, according to NASDAQ’s former Vice Chairman as well as an advisor of Jointer David Weild,
“Jointer’s new tokenization approach presents a better solution that has the potential to disrupt the entire real estate industry.”
Know about Jointer
Founded in 2017, Jointer over 2 funding rounds has raised around $2.5 million in order to build the technology. Now, this technology makes us tokenize assets that are worth multi-billion dollar just as the Chrysler Building.
Moreover, the advisors of Jointer are top professionals of the industry which include Nobel Prize Winners, NASDAQ’s former vice chairman, Visa Inc. founder, Yahoo’s former CFO etc.
What is Building Tokenization?
Well, tokenization basically means the process of issuing the security tokens in order to represent property’s equity or an income stream. Jointer was initially developed around this tokenization model, but once it faced some major issues, it created its own tokenization model.
Can Building Tokenization Benefit Property Owners?
Well, the new tokenization model by Jointer allows it to borrow money from the public. However, they are also allowing the public to receive returns which is then based on an index. This index again follows the complete real estate market of the US.
At present, the returns offered are at the rate of up to 20% per year, liquidity as well as cross collateral.
Why the Chrysler Building?
It’s quite likely that with the method by Jointer, this building can be leveraged with high ROI. Hence, the offer by Jointer was accordingly high as well.
Moreover, with the new tokenization model by Jointer, the property owners will be able to unlock up to 100 percent equity in their property.
Chrysler Building’s Auction Status:
Well, Jointer has made an investment of around 250,000 community members which could potentially be leveraged. Moreover, the property owner could stay in place too as the Principal. Also, the owner can continue with receiving returns from the profits by Jointer.
But if there no investment by the public, the property will then return to its market. Hence, there are certain risks involved too.
Plans by Jointer other than Chrysler Building:
Just in case Jointer isn’t able to tokenize Chrysler Building, they are planning for other iconic properties based in New York. So far Jointer is having a waiting list of 1,000 plus loan brokers in order to identify lenders as well as property owners who own over $1B when it comes to the tokenization potential.
So, what do you think about the tokenization model by Jointer and would they be able to tokenize the Chrysler Building?