Gordon Peery to Speak at Barbri Webinar "Tokenization of Commercial Real Estate: Offering and Trading Property Investments on the Blockchain"

Gordon Peery, partner in Seyfarth's Real Estate department and chair of the firm's Derivatives practice, will serve as a speaker for the Barbri webinar, "Tokenization of Commercial Real Estate: Offering and Trading Property Investments on the Blockchain," on October 28.

About the Program

The adoption of cryptocurrencies and the emergence of blockchain platforms have made real estate tokenization a potential capital-raising option. With tokenization, ownership interests in real estate assets can be more immediately bought and sold. Tokenization requires a thorough understanding of the technology, the offering process, and the regulatory issues involved.

Investors typically invest in real estate through an LLC or limited partnership that owns an underlying property. With tokenization, LLC or LP interests are tokens that can be traded or used as collateral in smart contracts. The issuer must determine the number and type of tokens and select an exchange platform for trading.

Offering documents may include operating agreements, subscription agreements, and a private placement memorandum. Offerings must also comply with know your customer (KYC) requirements and appropriately protect user data.

Tokens should have built-in compliance features such as transfer restrictions and secondary trading. Issuers must also determine how distributable cash will be paid (perhaps using stablecoins or other digital currency).

Listen as the panel discusses these and other matters associated with commercial real estate tokenization.