Early cryptocurrency adopters can now use their unrealized gains to secure a condominium at the Waldorf Astoria Residences St. Petersburg.
National real estate developer Property Markets Group announced Tuesday morning that it is the first to create a formal cryptocurrency purchasing structure. The Miami-based firm is leading a joint venture to build St. Petersburg’s tallest and first luxury-branded building, the Waldorf Astoria Residences.
Managing partner Ryan Shear said the novel process furthers Property Market Group’s mission to “be on the cutting edge of real estate innovation.” Publicly traded Shift4, an integrated payment processing and technology solutions provider, will exclusively handle the developer’s crypto transactions.
“It’s appealing to a broader base of people who I think want to diversify asset classes, and are looking for a way to do it seamlessly,” Shear told the St. Pete Catalyst. “We’re two feet in here with the collaboration — in a good way.”
Prospective condo buyers can use digital currency for deposits on PMG’s preconstruction real estate purchases. The firm’s in-house sales and legal teams will lead them through the process, which begins by completing a crypto transaction addendum.
Interested buyers then connect with Shift4 for mandatory Know Your Customer verification and receive a personalized payment link. PMG believes the process will appeal to a new generation of investors who want to convert crypto into tangible, long-term investments.
Shear said his firm spent significant time identifying the ideal platform and establishing a suitable payment structure. Shift4 has an extensive client list encompassing national airlines, hotel brands and professional sports teams.
“We are proud to work alongside a forward-thinking developer like PMG to enable crypto acceptance in the real estate space,” Pietro Moran, director of crypto for Shift4, said in a prepared statement. “This collaboration unlocks a new asset class for crypto holders while delivering the reliability and compliance our platform is known for.”
The global financial technology company processes over $260 billion annually for 200,000 customers using more than 100 payment methods. Shear said the collaboration with Shift4 needed an escrow agent’s blessing, and getting them on board was also an arduous task.
He said PMG’s due diligence and regulatory filing process was “nothing short of just hard work and time.” The firm now plans to implement the payment structure across all of its Florida projects, including the Waldorf Astoria Residences Miami and St. Petersburg, Sage Intracoastal Residences Fort Lauderdale, Twenty Sixth & 2nd Wynwood Residences, One Twenty Brickell Residences, E11EVEN Club Residences Beyond and 38 West Eleventh Residences Miami.
Crypto is known for its volatility. The cost of a bitcoin briefly fell from about $106,500 Sunday evening to $102,500 Monday morning before regaining its losses that night.
However, PMG remains unconcerned with price swings. Shift4 accepts and converts the digital currency into U.S. dollars for the developer’s escrow company, Old Republic Title.
Old Republic will then disburse the money to PMG. “The transaction really exists between the buyer and Shift4, in terms of converting crypto into U.S. dollars,” Shear said.
He does not expect PMG to ever hold crypto on its balance sheets, which is a potentially lucrative endeavor. Bitcoin’s value has increased over 24% in the past month, 58% in the past year and 982% since May 20, 2020.
“We’re not trying to monetize the buyer’s deposit,” Shear explained. “I hate to say ‘never’ for anything, but it’s highly unlikely that we’d ever hold crypto.”
Shift4 will initially accept low-risk stablecoins tied to the dollar. Prospective buyers with centralized exchange accounts, like Coinbase, can pay with bitcoin, ethereum, solana and other popular digital assets.
Bitcoin’s $2.08 trillion market capitalization only trails conglomerates like Apple, Microsoft and Nvidia. “It’s significant — or otherwise we wouldn’t be doing this program,” Shear said.
He believes other developers could follow PMG’s lead. Shear will consider 10 sales through the platform that the firm “may not have otherwise had” as a success.
The program resulting in 100 deals would be a “massive success” and lead to something “very permanent.” Shear said the “proof is in the pudding, but we’re encouraged. I think there will be traction there.”
Preorders for the Waldorf Astoria Residences St. Petersburg’s 163 luxury condominiums began April 30. Shear said PMG secured “a lot of sales right out of the gate” for the 50-story, roughly $500 million project at 150 Second Ave. S.
This content provided in partnership with stpetecatalyst.com.
