Miami's E11EVEN Hotel Becomes First to Accept Cryptocurrency for Condo Deposits
“We’re depositing the bitcoin into what’s called a stablecoin, which is a crypto platform that takes away the hedge," says PMG founder Kevin Maloney.
E11EVEN Hotel & Residences, a luxury high-rise set to break ground this year, will be the first project of its kind to accept cryptocurrency as a form of payment, according to its developers.
The condominium, developed by national real estate developer PMG and E11EVEN Partners, will be in Downtown Miami’s Park West district. PMG is the first development company to accept cryptocurrency for condominium deposits in preconstruction projects, according to founder Kevin Maloney.
“We’re depositing the bitcoin into what’s called a stablecoin, which is a crypto platform that takes away the hedge. It just pays you whatever the dollar value of that coin is at the time you deposit it,” Maloney said. “Stablecoin is part of CoinDesk, and Coindesk is depositing cash with the title company. That meets Florida law. We’re trying to take out the middle man at some point.”
Maloney says the condominium is set to be the city’s fastest-selling condominium in the last decade. Residences start at $300,000 and include studios, one- and two-bedroom apartments, as well as a limited penthouse collection and two presidential suites. The units are nearly sold out.
“There were initially 420 units. There’s a lot of people who combined units to make larger units, so I think we’re down in the mid-300s. We were able to sell through that job in about four weeks,” Maloney said. “We’ve never really experienced a sellout like that in the past. It wasn’t because of the price point. It was because of the product type, and what people were looking for and the experience.”
The 65-story condominium will have 375 fully furnished residences. Every unit will have “smart building” features and residents will enjoy an electric LED fireplace in their living room, fully built-out closets, custom Italian kitchens and a signature home essentials package.
Losing money won’t be a risk, according to Maloney.
“We’re taking it as a vehicle for buyers to use crypto and it’s immediately converted into cash, so that $40,000 coin that comes in is a portion of a deposit. It’s immediately turned into $40,000 in cash, and therefore it sits in the title company as cash,” Maloney said. “We are not taking a crypto risk in this particular situation.”
Since it’s such a unique concept, the project has gained a lot of both domestic and international interest, from celebrities, athletes and executive buyers, such as Mixed Martial Arts fighter Luke Rockhold, Women’s National Basketball Association player Candace Parker and ESPN co-host Sage Steele.
Maloney said he’s excited to see where the cryptocurrency trend goes, but hopes to see an upward trend in future properties and expects to other developers follow suit.
“Probably 10% or more of second or third deposits will come through some sort of cryptocurrency,” Maloney said. “This is kind of a beta site for us. We’re open to accepting cryptocurrency through the deposit structure.”
E11EVEN Hotel & Residences Miami is expected to be completed in 2023.
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