AssetBlock launched its commercial real estate investment platform on Algorand, a blockchain designed for the next generation of economic exchange. Through a joint venture with Lodging Capital Partners (LCP), a premier owner and asset manager of high-performing, upscale, and luxury hotels, AssetBlock also announces $60 million of exclusive hotel properties that will be tokenized on the platform. Investors will have access to properties that are unavailable to the public and additionally will be able to directly exchange Algos (Algorand’s digital currency) for their share in the properties.
Real estate is the world’s largest asset class, yet 80% of the $7 trillion commercial real estate investment market in the U.S. is controlled by institutional investors. AssetBlock’s platform expands decentralized participation in previously gated opportunities by working directly with top-tier partners and filling critical funding gaps for them. Thus, barriers to entry for non-institutional investors are greatly reduced, resulting in superior deal access, compelling economics, and a smoother investment process while also facilitating a lower cost of capital for real estate partners.
“We created AssetBlock because the modern economy was in need of modern technology. We saw an opportunity to build a solution that brings traditional and non-traditional real estate investors and professionals together efficiently, creating more opportunity for all involved,” said Mike Liddell, CEO and founder of AssetBlock. “Lodging Capital Partners represents the caliber of real estate investment partner that AssetBlock is proud to offer access to on our platform. LCP has invested in a portfolio of properties valued at more than $1.5 billion and continues to deliver strong performance.”
“Our partnership with AssetBlock opens up LCP to a new investor pool which allows us to fundraise and expand our business more efficiently,” said Steve Kisielica, Principal and CIO of Lodging Capital Partners. “To remain competitive in an ever-changing landscape, it’s vital for the real estate investment community to embrace technology like blockchain that is pushing the industry forward.”
AssetBlock announced that they chose Algorand because the latter is delivering on the potential that blockchain had envisioned: a borderless economy that eliminates global barriers to entry, decentralizes participation, efficiently brings together investors and opportunities, and meets AssetBlock’s high standards for security and compliance.
“AssetBlock is one of many innovative companies disrupting traditional business models by leveraging the power of Algorand’s blockchain technology,” said Steve Kokinos, CEO of Algorand. “AssetBlock’s model to broaden capital pools for real estate investment aligns perfectly with our long-term vision of building a borderless economy by removing friction for these type of investment opportunities globally.”