“Adam Neumann’s plans to disrupt the rental property market” after buying 4,000 apartments

Ousted WeWork founder Adam Neumann wants to disrupt the business model of personal living spaces like he has done with office buildings as billionaire tech mogul takes over apartment complexes across the country .

Neumann, 42, who was ousted as CEO of WeWork in 2019, has bought controlling stakes in more than 4,000 apartments valued at over $ 1 billion in cities like Miami, Nashville and Fort Lauderdale, according to The Wall Street Journal.

There have been many acquisitions over the past year, and friends and associates have said that he wants to create a widely recognizable apartment brand with amenities while looking to attract the same kind of young professionals who have benefited from WeWork’s co-work. the spaces.

“Since spring 2020, we have been excited about multi-family apartments 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,” said DJ Mauch , a partner in the Neumann family office.

“We are delighted to play a role in this future,” he said.

Neither Mauch nor Neumann provided details on what would make them better than other owners who offer upscale amenities and perks in luxury apartment buildings.

Adam Neumann, ousted WeWork co-founder, quietly bought controlling stakes in more than 4,000 apartments valued at over $ 1 billion in cities like Miami, Nashville and Fort Lauderdale

He made his money as a co-founder of WeWork, a common workspace, and was ousted from his position in 2019 - leaving $ 200 million for consulting and other fees and nearly 11% stake in the company

He made his money as a co-founder of WeWork, a common workspace, and was ousted from his position in 2019 – leaving $ 200 million for consulting and other fees and nearly 11% stake in the company

Neumann, 42, has also invested in a number of startups, such as Alfred Club Inc, a company that provides concierge services such as grocery and laundry pickup and drop-off in residential buildings, said sources in the Journal.

Neumann, an Israel-born business mogul, made his fortune as a co-founder of WeWork in 2010, and raised more than $ 10 billion for a company once valued at $ 47 billion.

In its heyday, Neumann also launched WeLive, which was designed as a network of buildings where people could rent rooms in furnished and shared apartments.

The company opened apartment buildings in New York and Virginia, but closed them after Neumann left in 2019.

He left the company after plans for an IPO exploded dramatically in August of the same year, prompting investors to dismiss the eccentric CEO over his exorbitant spending and demeanor. more and more erratic. He was charged with drug use and sex discrimination.

To encourage him to quit the company, majority owner SoftBank Group Corp paid Neumann nearly $ 200 million for advisory and other fees and bought him $ 578 million of shares.

He continues to own an 11% stake in WeWork, which is valued at around $ 722 million, Forbes declared and is now worth $ 1.6 billion.

Neumann now buys apartment complexes, like Stacks on Main in Nashville, Tennessee

Neumann now buys apartment complexes, like Stacks on Main in Nashville, Tennessee

An entity linked to the Israeli businessman also owns the Las Olas company in Fort Lauderdale, Florida.

Neumann is using his wealth to buy stakes in the lucrative rental industry, which has seen prices rise in many cities since the start of the pandemic.

Most of its real estate is new properties with more than 200 units and lots of amenities, the Journal reported.

In Nashville, Tennessee, Neumann bought Stacks on Main, a 268-unit property that includes a saltwater pool, dog park, rooftop lounge, and garbage collection service.

Each apartment also has a Nest thermostat and is billed on Apartments.com as “the gateway to an East Nashville lifestyle without the crazy price”. Rents for the apartment complex start at $ 1,390.

Meanwhile, in Fort Lauderdale, Florida, a “Neumann-related entity” owns Society Las Olas, a 639-unit apartment building that includes a shared workspace, putting green, and hair salon.

And in downtown Miami, Neumann recently signed a deal to buy a controlling stake in the 444-unit Caoba apartment tower, valuing the property at around $ 220 million. The property includes a swimming pool with cabana and towel service, an outdoor play lawn and a separate lawn, as well as a club room with a fully equipped kitchen, billiards, table football and a multimedia area.

Nearby, another Neumann-related entity also owns the 387-unit Yard 8 Midtown apartment building, which appears to be targeting millennials on its website with a pitch that says: “The house is an atmosphere. It is something that you feel in your soul. A vibration of belonging, novelty and endless possibilities. That’s life at Yard 8 Midtown.

The apartment complex has a swimming pool and sun terrace, a clubhouse with an outdoor bar and a café bar.

Neumann has also reportedly invested in suburban apartments, where demand has increased in recent years as people working remotely no longer have to travel to town.

He owns stakes in a building in Decatur, Ga., And another in Norwalk, Connecticut, according to the Journal.

Another 'Neumann-related' entity owns the 387-unit Yard 8 apartment building, which appears to be targeting millennials on its website

Neumann also recently signed a contract to purchase a controlling stake in the 444-unit Caoba apartment tower, valuing the property at around $ 220 million.

Other properties that Neumann now owns include Yard 8 and the 444-unit Caoba apartment tower in Miami, Florida.

But it remains to be seen whether Neumann will be able to reverse his reputation after his widely publicized fall.

In April, Hulu released the documentary WeWork: Or the Making and Breaking of a $ 47 Billion Unicorn.

And in a 2018 lawsuit, Ruby Anaya, a former WeWork employee, alleged that Neumann pleaded [her] with shots of tequila during his interview with the company ”, according to CNN.

She also claimed that an employee grabbed her, pulled her against him and attempted to forcefully kiss her. She says she was fired in August 2018 in what she believes was an act of retaliation.

Neumann’s chief of staff, Medina Bardhi, also filed a complaint with the Equal Employment Opportunity Commission in New York in 2019, saying Neumann called her maternity leave a ‘vacation’ or ‘retirement’ and that she had been repeatedly “derivative and marginalized by Mr. Neumann and other WeWork officials,” according to the New York Times.

In November, Neumann conceded in an interview that the company could have matured “sooner”, saying: “We had a fun culture.”

He also repelled previous reports that he had been given a $ 1.7 billion “golden parachute” to leave the company.

“This perception that, as the company went from a valuation of $ 47 billion to $ 9 billion, that I somehow profited as the company went down, is completely wrong, ”he said.

Last year, WeWork executive chairman Marcelo Claure, also an executive at SoftBank and executive chairman of Sprint, told CNBC that claim was “totally false.”