Two years after a dramatic rise and fall, the latest venture of WeWork co-founder Adam Neumann would begin to take shape.
Entities linked to Neumann have purchased controlling stakes in more than 4,000 apartments across the United States, the Wall Street Journal reported, citing records and people familiar with the transaction. The holdings, mostly located in Sunbelt cities like Atlanta and Nashville, are valued at more than $ 1 billion.
Most of the apartment transactions have taken place over the past year, according to the Journal. People familiar with Neumann’s relationships told the outlet it aimed to change the rental industry and create a heavy equipment brand, targeting a group of younger renters.
“Since spring 2020, we have been excited about multi-family apartment living in vibrant cities where a new generation of young people are increasingly choosing to live, the kind of cities that are redefining the future of life”, DJ Mauch, Neumann’s family office partner, the Journal said.
Neumann appears to be addressing the hot streak fueled by the multi-family market pandemic, which has largely pushed up rents in smaller, warmer towns that have become popular destinations for migrants abandoning the costly burdens that come with living in a big city.
In addition to the commodity-rich apartment buildings, a person familiar with the matter told Journal Neumann that she has also invested in a host of startups. The Journal reported that the former founder in 2020 took a controlling stake in Alfred Club Inc., a digital personal assistant for multi-family residents.
Following his ouster from WeWork, Neumann and his wife abandoned much of their luxury homes. In August, Neumann sold his Greenwich Village townhouse for $ 13.65 million, four months after selling his northern California estate for $ 22.4 million. In 2020, Neumann sold his Southampton farm for $ 1.25 million and an estate in Westchester County for $ 3.39 million.
But Neumann has emerged in recent months from the calamity that occurred at WeWork that ultimately forced him out of the company he founded. WeWork was once valued at $ 47 billion, but the coworking giant slipped dramatically amid the drama of a suspended IPO, not going public until November – two years later than expected.
As part of his WeWork exit plan, Neumann received a $ 245 million stock award in early 2021. Neumann also received $ 200 million in cash and the refinancing of a $ 432 million loan. dollars.
[WSJ] – Holden Walter Warner