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WeWork founder’s new venture eyes prime residential property

Flow the brand-new company from WeWork founder Adam Neumann’s that’s designed to upend the residential experience has designs on a few of America’s best areas.

Why it matters: In its start, Flow has recently acquired a large number of residential units in Atlanta, Nashville and Miami cities where residents already are having trouble getting a reasonably-priced spot to rent or own. Markets in those locations have already been roiled by corporate investment.

  • Flow on Monday announced it had scored a $350 million investment from prominent Silicon Valley venture firm Andreessen Horowitz.
  • “The investment thesis for Flow seems to reflect economic and social trends which are driving more folks to rent homes instead of buy them at the same time if you find a housing shortage,” the brand new York Times reported.

What things to expect: Information regarding the venture’s exact business plan remain scarce, but Andreessen Horowitz said in a post that Flow aims to “[connect] people through transforming their physical spaces and building communities” of their homes.

  • Earlier this season, Tim Peterson of Florida-based Altman Cos., hired to control a few of Neumann’s new Miami properties, suggested to Bisnow that its vision aimed to make a communal vibe.
  • He said that might be potentially nurtured through programming like fitness events, a speaker series or volunteering events.

The picture as a whole: Flow’s first three cities have previously seen their housing markets transformed by corporations gobbling up single-family homes and turning them into rentals along the way driving up both home and rent prices.

  • All three were on the list of 10 U.S. metro areas with the biggest share of homes purchased by corporate investors in the initial quarter of 2022, in accordance with a Redfin analysis.

Zoom in: Have a look at Nashville, where an entity with ties to Neumann recently purchased the 268-unit Stacks on Main for $79 million.

  • The percentage of Nashville homes purchased by corporations grew from 17.3% in the initial quarter of 2021 to 24.6% in the initial quarter of the year, driving up the purchase price to get in a red-hot market.
  • To meet up rent demand, Nashville will dsicover its expected apartment inventory rise by 7% from 2021 to 2022 the biggest increase in the united states. It remains cheaper to rent than buy in the town, where the average apartment downtown is pushing $2,000.
  • Stacks on Main in slightly cheaper East Nashville includes a saltwater pool, your dog park and valet trash pickup. Probably the most affordable one-bedroom unit at this time costs $1,475 monthly, in accordance with the complex’s website.

Underneath line: Using what we know up to now, there’s little to differentiate Flow from any property developer. And the ones companies don’tpurport to change the planet with their business design.

Axios’ Deirdra Funcheon, Nate Rau, Adam Tamburin and Thomas Wheatley contributed to the report.

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