Tuesday, The Wall Street Journal reported that WeWork co-founder Adam Neumann quietly took over $ 1 billion worth of multi-family properties, including several apartment projects in South Florida.
A Florida property manager has been hired to manage operations at two of Neumann’s buildings in Miami, where a key goal will be to develop a sense of community.
Neumann Led WeWork To A Huge $ 47 Billion Valuation In 2019 By Playing a community atmosphere.
Courtesy of The Altman Management Co.
Adam Neumann is said to have bought a controlling stake in the Caoba building in Miami.
“We are fortunate to have very forward thinking, off the beaten track owners who want to disrupt the status quo and offer something beyond what standard property management or apartment living is,” said Tim Peterson. , COO and CIO at Altman Cos, based in Boca Raton, Florida.
His company’s property management division, Altman Management Co., said on Tuesday it had added two apartment buildings to its management portfolio, now called Caoba and Yard 8. These are part of Neumann’s new venture, which , according to Peterson, is tentatively called Future of Living. This phrase is also a slogan for Alfred, a janitorial services startup in which Neumann reportedly invested $ 42 million.
Caoba means “mahogany” in Spanish. The building, which opened in 2019, is a 43-story, 444-unit tower that is part of the Miami Worldcenter’s 27-acre, multibillion-dollar development in downtown Miami. Developed by Falcone Group and CIM Group, it is 98.8% leased, with rents ranging from $ 2,940 to $ 4,570, depending on Apartments.com.
Yard 8 is a 387-unit apartment building in the Midtown section of Miami, a pedestrianized neighborhood anchored by a target and trendy restaurants and boutiques. The Yard 8 was developed by Wood Partners and also opened in 2019. It is 98.6% leased, with rents ranging from $ 2,253 to $ 11,530.
Peterson said a sense of community at the properties could be encouraged through the programming. Details have yet to be decided, but activities could potentially include fitness events, an Artist-in-Residence program, and / or a lecture series featuring business owners, artists and artists. local fashion designers. There could be food truck events with residents voting on cuisines to showcase and wine tastings. A voluntary component is also being studied, such as 5 km races or back-to-school races for children.
Neumann once captivated investors with big visions on co-living and coworking, even expanding with a school called WeGrow and apartments called WeLive. Famous Neumann trademark the word “we”. But after a prospectus revealed WeWork’s astonishing losses, an IPO slated for 2019 has been pulled. WeWork was taken over by new executives and finally went public last March with a more down-to-earth valuation of $ 9 billion. Neumann walked away with an estimate $ 2.1 billion and temporarily remained out of public view.
In November, Neumann interviewed The New York Times and mentioned that he had made investments through his family office, called 166 2nd Financial Services. Now, as reported by the WSJ, Neumann intends to create a widely recognizable, equipment-heavy apartment brand.
Peterson did not have details of Neumann’s major expansion or rebranding plans, although he “wouldn’t be surprised if they acquire additional trophies in South Florida.”
For now, the focus is on the two properties announced in Miami.
“We don’t want to run this like an apartment complex,” he said. “We want to run it as a community, and really take that to heart and focus on engaging and connecting with residents… We ‘We seek to go above and beyond and deliver unexpected daily pleasures to our residents, to make their lives easier and make them feel part of the community.
Peterson said his company was recommended to the Neumann team when they were looking for properties to buy. He walked through the properties with Neumann and his team before giving a presentation on how the Altman company would run them.
“I hate to be nerdy, but sometimes you click and you kind of find a like mind,” Peterson said. “We look at the world the same way. We want to be a little different and provide a little more – in this case, a lot more – than ordinary standard services.”
Bisnow / Jon Banister
Former WeWork CEO Adam Neumann at the Creator Awards launch in Washington, DC, 2017.
Peterson declined to say how much Altman charges for property management services because “different owners have different budgets and different styles.” A rule of thumb would be to have one person on site for every 100 apartments for “indoor” tasks such as liaison with residents and one person available for “outdoor” tasks, ie building maintenance. . At Neumann properties, however, staff ratios will be higher, with concierge-type services.
Peterson described Caoba and Yard 8 as “world class properties”. Caoba includes touches like quartz countertops and floor-to-ceiling windows, while Yard 8 has a more industrial design, with open-plan spaces and loft-style concrete ceilings.
In line Comments of renters include dozens of 5-star ratings and admiration for luxury facilities, but also complaints about party-loving neighbors and long waits for elevators. Reports described theft Auto at yard 8 and a shooting in Caoba. Peterson said crime and overcrowding are, sadly, “frustrations of city living,” but the company would do everything in its power to provide a superior living experience. A short-term rental program at Caoba is being phased out, Peterson said.
Neumann’s other real estate purchases would include mansions in the Miami area, multi-family properties in Nashville and Atlanta, and the 34-story, 639-unit Las Olas Society in Fort Lauderdale, which has been touted as the largest cohabitation space. of the country when it opened in 2020.
On rent growth, Peterson said there won’t be huge and immediate increases, but market forces will dictate prices and well-managed properties may demand higher rents. Miami rates have gone up 44.4% in just one year, by Realtor.com.
“The idea is to provide more services, a better place to live and ultimately get paid a premium for it and produce a return on your investment,” Peterson said. “The rental market in South Florida is growing as rapidly as I have seen it in my career. “
Future of Living chairman Christopher Hill, former COO of WeWork and CEO of Japan, declined to comment.