A Miami Beach nightclub is for sale, and open to Bitcoin buyers, which could make it the first known commercial real estate deal to close with cryptocurrency.
Treehouse nightclub owner and operator Michael Freundlich put the single-story, 4,322-square-foot property at 323 23rd Street on the market.
The nightclub, known for its techno and EDM music nights, has had to scale back its hours due to Miami Beach restrictions during the pandemic, and now is open from 6 p.m. to midnight. It has its liquor and tobacco licenses, which would allow operations until 5 a.m. once Covid restrictions are lifted.
Avison Young’s Michael Fay, Brian C. de la Fé and Emily Brais have the listing. There is no asking price.
Early offers are topping $15 million for the property, although so far none have come in from Bitcoin or other cryptocurrency buyers, Fay said.
Freundlich, through his 323 Sobe affiliate, bought the property in April 2015 for $3.25 million, property records show. The building is on an 8,890-square-foot lot.
Fay said the seller is flexible on the purchase price and options, as he will accept variations of traditional sales, including cash, a lease with a purchase option, and cryptocurrency. Freundlich also is open to a split sale between cash and cryptocurrency.
Although holders of various cryptocurrency, such as Ethereum and Litecoin, are welcome to make an offer, Bitcoin offers will be given priority as first choice, Fay said. And a prospective cryptocurrency buyer won’t have to transfer his or her tokens into dollars before buying, but can directly deposit Bitcoins to Freundlich’s personal digital wallet.
Over the years, Bitcoin has realized significant gains. A single Bitcoin currently equates to $55,657, up from about $9,000 a year ago. Buying the nightclub would allow Bitcoin holders to convert their digital money into a real estate asset that already has an open business, Fay said.
This isn’t the first commercial real estate deal open to cryptocurrency investors, but it could be the first known one to close.
In 2019, downtown Miami’s Security Building, leased to WeWork, was expected to sell in a cryptocurrency deal. New York-based Inveniam Capital Partners, a financial and advisory services firm, was to close on the $65.5 million purchase and had made a deposit in an undisclosed amount of Bitcoin.
But the deal failed, with Inveniam CEO Pat O’Meara saying the senior lender changed the terms of the loan. O’Meara walked away from the mortgage and was unable to secure another lender.
As for Freundlich, this isn’t the first time he is trying to sell the Treehouse. Five years ago he sued New Jersey-based Sky Park, alleging it had made an offer on the nightclub, only to lead him on without closing. Freundlich said he had footed a $37,000 tab for Sky Park Travel expenses.