Houston, Texas – March 5th, 2020.
When it comes to Commercial Real Estate, the one thing property owners always want is cash. This was formerly only attainable via loans or by selling off property. The days of those being the only two options are long gone as the tokenization of real state has changed the market for CRE realtors and investors.
Red Swan, a New York and Texas-based Commercial Real Estate Marketplace, has partnered with Polymath to tokenize $2.2 billion worth of high-end real estate. Founded in Houston Texas by CEO Ed Nwokedi, Red Swan “makes it possible to invest in commercial real estate projects that are out of reach for private investors.” The ability for owners to sell fractional ownership of properties has allowed the market to open up to an entirely new world of investors that Red Swan sees as major potential. Red Swan provides a platform for tokenized Commercial Real Estate where accredited CRE investors can purchase and invest in high-end real estate, and later, trade those assets. Red Swan, in turn, makes their profit via a percentage of the equity being issued. Red Swan has garnered over 30,000 registered accredited investors on its platform. It should be noted that Red Swan is currently in the process of becoming a registered investment adviser with the United States Securities and Exchange Commission. Polymath came on board as Red Swan’s partner in order to deliver the technology needed to launch and maintain security tokens generated through the CRE investments. The new token will be using Polymath’s ST-20 Standard.
The new project from Red Swan and Polymath represent 16 high-end properties across the country from New York City to California, and even includes a 150-acre hemp farm in Ontario, Canada. The pre-sale will consist of $780 million worth of tokens to accredited investors. This will be the largest sale of tokenized real estate to date. Red Swan and Polymath are seeking investors who are looking to invest anywhere from $500,000 to $10 million, but who don’t have the funds to purchase out right ‘Class A’ commercial real estate. Funds will be held in escrow until shares are distributed later in April.