There’s been a lot of speculation regarding the recent offering process of the Chrysler Building. Much of that was fueled by the secretive nature of the deal, with a closed bidding that ended with very low offers and a sale price of under $200 million.
This is leaving the public to question why was Amazon ignored? Why was Jointer ignored? And as can be expected, these questions have introduced a lot of uncertainty, with many people trying to guess what’s going on.
Amazon was proposed as one of the potential buyers for the building, although the company has not confirmed these rumors in any form so far. At the same time, Amazon was recently pushed out of New York by @AOC. However, whether or not they would have any interest in the location is a different story. Potential Amazon interest also leads to speculation about a possible partnership with another bidder, Jointer. Jointer is a mystery bidder that offered $1.5b to tokenize the art-deco masterpiece.
The Work of Jointer
Jointer is a company that has expressed an interest in purchasing the building, although they have also explained that the bidding process made it very difficult to do any real negotiations. The company has further expressed disappointment over the way their proposal was handled in the first place, claiming that the secrecy of the bidding process is not in anyone’s favor at the moment. This secretive bidding process has many questioning CBRE’s role in the coverup.
The company has been on the market for a couple of years already and spent millions creating a blockchain platform aimed at tokenizing major assets. They plan to implement their technology on the building itself presenting the ownership team an opportunity to continue earning profits on the building. The company was recently awarded the title, “Best Startup in the World”, receiving a $1 million prize for that recognition.
The Secret Negotiations
And yet, despite that, it doesn’t look like they are going to be allowed in the negotiation process for the building at this point. The company has talked about the situation publicly and has expressed their views regarding the way they were treated, although that doesn’t seem to have changed much.
There has also been some talk about the proposed “tokenization” of the Chrysler building, with some speculating about how exactly that could be carried out. Tokenization is a relatively new concept in the modern market, with many companies implementing a restrictive and high-risk tokenization process. Jointer’s new tokenization process has a strong potential to be a game-changer in the way owners unlock equity in their commercial real estate portfolios.
The Tokenization Process
The company can currently borrow money from public resources while repaying initial investors on the basis of an index aligned with the US market as a whole. The investments have been noted as very strong ones by many critics, with a high return rate and other positive features that have set the program aside from others.
Jointer positions itself above the competition through the strong team and advisory board, which includes 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. David Weild, the former Vice Chairman of the NASDAQ and one of Jointer’s advisors says “Jointer’s new tokenization approach presents a better solution that has the potential to disrupt the entire real estate industry.”
Is the Situation Beneficial for the Seller?
There’s also the question of whether this approach to selling the building benefits the seller themselves. There has been speculation that the reason for the whole secretive process was to benefit the people behind the deal in the first place. But according to recent analysis, that might not be the case. Quite on the contrary, the process landed the Sellers a huge loss from their initial investment.
The handling of the deal negatively affected the overall performance of the sale.
Jointer doesn’t seem to be relying too heavily on this particular deal for their survival on the market though. Quite on the contrary, the company is apparently already looking forward into the future and is considering tokenizing other properties in the region. There is indeed no shortage of opportunities available to the company right now, and given how their business model works, they can quickly scale to tokenize a high number of properties, quickly.
In the end, Jointer is in a critical stage of its operations right now. The company needs to prove its worth to the market and stabilize itself in its current position, while at the same time maintaining a firm grip over their line of work. This can be difficult to align properly in the context of circumstances like the secretive Chrysler building deal. Jointer’s leadership is prepared for the eventuality and seems poised for the future.