BPN Capital Group announced the first-ever blockchain-based commercial mortgage associated with a property in the iconic SLS Lux Brickell in Miami, FL. The tokenization of this property will allow accredited investors to directly hold and control their stake, eliminating the restrictions associated with investing in commercial mortgages through conventional channels.
The asset is the Flagship retail corner Situated at the base of the SLS Lux, a 57 story, 450 unit premier residential condominium, and hotel tower. Located on the northeast corner of S Miami Avenue and SE 9th Street, one block away from Brickell City Centre and across the street from Mary Brickell Village.
“This is like the moon landing for blockchain,” said Mr. Edward Rodriguez, CEO of BPN Capital Group. “We are tokenizing a first-in-class fully stabilized property with sophisticated tenants like Chipotle, Ojo de Agua, Kaori, and Bellillo. We are restoring control to accredited investors and family offices over their assets. This also circumvents the hoops they’d have to jump through to invest in commercial mortgages like this on the secondary market.”
BPN Capital Group will offer tokens associated with the commercial rental property to investors who qualify under the US Securities and Exchange Commission’s Regulation 506(c). Following the mandatory one-year holding period, investors will be able to sell or trade their tokens just like any other registered security.
Furthermore, the tokenization of the property means investors are not locked into long-term ownership as they would be with conventional bonds, which take years to mature. Instead, investors can trade their tokens on the SEC and FINRA-regulated Alternative Trading Systems, tZERO. Tokenization is a security traded on an exchange also means investors can part with a small portion of their stake while retaining some of their investment.
“Historically, if you wanted to sell 5% of your holdings, you’d have to call a broker or an accountant or someone like me who would then do a quantitative risk analysis before putting your assets back on the market,” Rodriguez said. “Tokenization puts investors in the drivers’ seat and lets them sell their holdings directly and easily, as they see fit.”
Finally, blockchain ensures an accurate, transparent record of all transactions that occur on the ledger. There is always a trail of whatever was changed, when, why, and by whom. This transparency revolutionizes the investment and lending spaces, which have long been considered opaque and inaccessible to the uninitiated.
“We are proud to be tearing down old walls and democratizing the world of investing and lending,” Rodriguez said. “Society shall embrace these structural changes because things will never go back to what they were before. This is the future, and we’re proud to be part of this historic moment.”