Manhattan’s iconic Chrysler Building is up for sale, but discovering who the potential buyers remain difficult since the bidding process has closed.
Amazon has been proposed as a potential suitor for the building, although the Bezos led business has not confirmed these rumors in any form so far. However, whether or not they would have any interest in the Chrysler Building presents an interesting case. The potential Amazon interest leads to speculation concerning Amazon’s interest in blockchain and tokenization by forming a potential partnership with another bidder, Jointer. Jointer’s offer would allow a buyer like Amazon to immediate unlock the equity they spend to purchase through tokenization.
What does Jointer’s Tokenization Look Like?
Jointer’s “tokenization approach” can potentially disrupt the real estate industry. The Father of the JOBS Act and Jointer Advisor, David Weild, agrees and says that “Jointer’s new tokenization approach presents a better solution that has the potential to disrupt the entire real estate industry.”
Presently, tokenization means issuing security tokens to represent an income stream or equity in a property. Many do not understand the constraints and exposure regarding liquidity and regulations. The current tokenization style is extremely similar to old crowdfunding styles that have yet to scale. The only innovation was replacing papers with digital notes to instantaneously verify ownership of an asset token.
Initially, Jointer’s platform was created around this limited tokenization style. After recognizing the major issues, Jointer created a new tokenization style that totally removes the constraints and exposures to specific property investment. Investors purchase Jointer debt tokens and receive returns based on commercial real estate performance across the US. The allow instant liquidity without a secondary market. Jointer also finally lowers the barrier to entry by offering investments for as little as $1 without a lock-up period.
Who’s behind Jointer?
Jointer was founded in 2017 and fundraised $2.5 million from angels to build the technology that allows them to tokenize an unlimited number of assets like the Chrysler Building, the Empire State Building, and the Willis Tower. Jointer’s advisors include top global leaders, including Nobel Prize Winners, the Former Chairman of the SEC, former vice chairman of the NASDAQ and “Father of the JOBS Act”, the founder of Visa Inc., and the former CFO of Yahoo.
Will Amazon consider tokenization?
Although the technology is new, Jointer’s straight forward end-to-end solution can potentially entice Amazon to consider the technology. For traditional real estate owners and lenders, Jointer offers a true full-service solution.
When it comes to tokenizing a property, other regular tokenization options in the market offer high-cost solutions while leaving out crucial needs, passing the complexities, costs, and liability for the fundraising and marketing onto the owner.
Jointer presents property owners with a new tokenization style that allows a commercial real estate property owner to instantly access up to 100 percent of capital for their equity at zero cost while continuing to earn profits from the property.
Jointer’s new tokenization model allows Jointer to issue debt tokens for the public to purchase while allowing them to receive returns based on an index that follows the performance of the entire US commercial real estate market. The index is currently generating an average of 20 percent returns a year, all with zero specific property exposure.
So in theory, Amazon could purchase the building, tokenize with Jointer, receive their capital back, (and more) then continue to earn profits based on the performance of the entire US commercial real estate industry.
For regular investors, this means they not only get high returns with zero exposure to specific property risks.
What is next for the Chrysler Building?
The bidding process is closed so any answers remain to be seen. Innovative solutions that benefit regular people deserve the opportunity to be heard.
It has been reported that regardless of the outcome, Jointer has already started to contact a few other iconic properties in New York. Jointer may struggle with traditional brokers embracing their new technology so they will have to find a way to go directly to owners.
As we know, the market changes based on consumer needs. Companies always run the risk of becoming obsolete. The only companies that will survive are those that offer the best services to property owners and lenders.