Tokenized Real Estate
With the popularity of digital securities/security tokens on the rise, one of the most benefitted applications is in real estate. Real estate represents an asset often larger than even very successful investors can afford. By utilizing blockchain, fractionalized ownership can bring access, and liquidity, to this asset class that has not been seen before.
To date, most of the products that have launched, with a focus on tokenized real estate, are within the state of New York. This has now changed, with an announced offering within South Carolina.
This project is brought to investors through a working partnership between Harbor, and Convexity. Made possible through the framework and platform provided by Harbor, Convexity is offering the sale of digital tokens. These tokens represent a fractionalized ownership of a luxury student housing complex, owned by Convexity, within South Carolina.
The planned token offering will see the distribution of 955 tokens. Each representing a single share within the housing complex. Each share will be sold for $21,000, representing a goal of $20 million investment total.
The appeal of this offering is multifold. Through the use of secondary markets, these shares will be tradable within a short period of time. This brings levels of liquidity not seen before, as investors can enter/exit their positions with ease.
Furthermore, as these tokens are securities, they are subject to regulatory oversight. This means that holders will be privy to regular financial statements, and transparency in the process.
With these being subject to regulations, the sale is restricted to accredited investors only. These investors are required to pass all KYC and AML checks along the way.
Harbor is a United States based company that provides the step-by-step framework for companies looking to tokenize their shares.
Convexity is a real estate investment firm. They are one of various branches of the mother company, DRW. Based out of Chicago, Illinois, they were founded in 2009, and have expanded into a global brand since.
The Hub at Columbia
The Hub at Columbia represents one of various real estate investments owned by Convexity. This asset is a luxury student housing complex located in the vicinity of the University of South Carolina. It is this property that is the subject of the upcoming token sale.
With a Twist
While Convexity may be the first to offer fractionalized ownership of student housing, various companies have delved into the real estate market in other manners. Below are a couple companies that have done just that.