Adam Neumann's Flow In Talks To Sell Stake In 425-Unit Buckhead Tower

One of the first pieces of the multifamily empire amassed by Adam Neumann is about to be in new hands.

An affiliate of Neumann's Flow is in talks to sell a stake in a Buckhead apartment tower it acquired in 2021, a source with knowledge of the deal told Bisnow.

Cortland, a large, Atlanta-based apartment developer and landlord, is expected to close in the next few weeks on the acquisition of the 425-unit apartment building at 3005 Peachtree Road NE, the source said. Cortland will take over management and leasing of the property.

Cortland has already taken over the branding of the property’s website, renaming 3005 Peachtree to Cortland at Buckhead Village.

Cortland’s recapitalization comes nearly four years after Neumann’s family office, 166 2nd Financial Services, purchased the 22-story apartment tower for $205M, another source familiar with the previous transaction told Bisnow. Bisnow couldn't independently confirm the purchase price.

Both sources requested anonymity to discuss sensitive negotiations. 

Neumann’s name doesn't appear in any public records tied to the property. It is owned by 3005 Peachtree Owner NE LLC, which is registered to FOL Management, according to the Georgia secretary of state’s business database. FOL is an affiliate of Flow, Neumann's residential brand, and the two firms share an office in Bay Harbor Islands, Florida.

Flow's ownership of the building hasn't previously been reported. Nazare Capital Vice President of Real Estate Mark Lapidus signed financing documents filed in the Georgia Clerks Authority database on behalf of 3005 Peachtree Owner. Lapidus was described as WeWork’s former head of real estate in a marketing brochure for Flow.

A Flow spokesperson didn't respond to messages seeking comment. Cortland CEO Steven DeFrancis declined to comment.

Neumann’s family office purchased the property, which was then folded into Flow after the apartment group was formed in 2022. The Wall Street Journal reported in 2022 that entities tied to Neumann purchased several traditional apartment properties totaling more than 4,000 units for more than $1B, including two unspecified buildings in Atlanta.

Neumann was reported to be aiming to create a lifestyle apartment brand, stocked with amenities and seeking to shake up the apartment rental industry.

In May 2021, the entity that purchased 3005 Peachtree obtained a $150M loan from Barings that was set to mature June 10, 2024, according to documents filed with the Clerks Authority database. It is unclear whether the loan was modified since then.

Barings didn't reply to messages seeking comment.

Mill Creek Residential developed the apartment complex, originally called Modera Buckhead, in 2016, financed with a $144M taxable bond from the Fulton County Development Authority. The official registered owner of the property is the Development Authority, also known as Develop Fulton.

A Develop Fulton spokesperson confirmed to Bisnow that the project was transferred to 3005 Peachtree NE Owner in 2021.

“Develop Fulton holds title to the property for the purpose of facilitating a property tax incentive for the company. Our understanding is that there are five years left in the incentive schedule,” the spokesperson said in an email. “Otherwise, we do not have additional details on timing or any pending transaction.”

Flow is Neumann’s follow-up to his roller coaster journey with WeWork, which he founded in 2010. The coworking operator rapidly grew internationally before filing for an initial public offering in 2019 that showed significant financial losses and questions about management. The revelation ultimately led to Neumann stepping down as CEO. In 2024, Yardi Systems purchased a majority stake in WeWork and brought it out of bankruptcy.

Flow received a $350M investment from Andreessen Horowitz in 2022. According to Flow’s website, it operates properties in Florida and Saudi Arabia.

This isn’t the first time Flow sought to raise new capital for its apartment portfolio. Last year, the online crowdfunding real estate platform Yieldstreet opened two funds on its crowdfunding platform to raise money for its share of expenses at two Nashville properties “experiencing a cash flow deficit to meet its obligations.”

Flow has also been active in the Florida market. It purchased a 16-acre parcel in South Florida through a court-ordered auction for $70.5M, Bisnow reported. And last year, Flow — in conjunction with the Israeli investment firm Canada Global — purchased a Miami office building and a 500-unit developable site for more than $116M.