TROPHY HOUSE

NFTs, real estate’s next digital frontier, are here.

| BY GEOFF NUDELMAN |

When the Palazzo di Vista property in Los Angeles’ exclusive Bel-Air neighborhood went up for sale in 2021, it wasn’t the millions of dollars in marble or the sweeping views that made the headlines, it was something a bit more creative.

Co-listed by The Agency’s Mauricio Umansky and Compass’ Aaron Kirman, the expansive hilltop estate, on the market for $87,777,777, features an NFT (non-fungible token) art collection valued at more than $7 million and represents the potential future of the real estate business.

“NFTs aren’t changing the scope of the sale but do draw attention to those that may be in the market for a new trophy property and the one-of-a-kind NFT collection that comes with it,” Umansky says.

In short, NFTs are a digital property that live on a blockchain (a digital record of sorts) and are traded via unique identification codes that makes each token separate. The emerging technology is making waves in the art world where creators are finding new ways to monetize digital forms of physical works or digital-only pieces that live exclusively on a blockchain.

“It’s a new experience of the space,” says Colossal Properties President Philip Braunstein. “Instead of just

Palazzo di Vista features an NFT (non-fungible token) art collection valued at more than $7 million and represents the potential future of the real estate business.

looking at paint on canvas, you can rotate in all sorts of images for a more dynamic way to experience art.”

The collection is an attractive addition to an already magnificent property and could be the tipping point for someone comparing one high-level home to another. However, NFTs represent only the beginning of how the blockchain may revolutionize real estate at all levels.

Both Umansky and Braunstein note serious interest and growth in “smart contracts,” which essentially move the transaction process into the blockchain, allowing both parties to verify and complete most aspects of the transaction through this digital record as opposed to paperwork and potentially lengthy bank delays.

“It essentially wraps ownership into digital documentation and makes for a faster transaction,” Braunstein says.

Umansky is optimistic about the long-term impact of blockchain, noting that his brokerage is “investing heavily in new technologies and advancements this year,” including smart contracts, NFTs, cryptocurrency and additional data platforms.

What remains to be seen is how quickly this evolution occurs. For now, digitization isn’t replacing many of the traditional aspects of a real estate transaction, but, according to Braunstein, “It’s the future.”

PHOTOS BY JOE BRYANT

ON THE MARKET: PALLAZO DI VISTA

777 SARBONNE ROAD, BEL AIR, CA BEDROOMS: 7 BATHROOMS: 11 ASKING PRICE: $87,777,777

LISTING AGENT:

Mauricio Umansky; 424-230-3701 mumansky@theagencyre.com (theagencyre.com)