Andreessen Horowitz Takes Stake In Adam Neumann's Apartment Portfolio

Venture capital firm Andreessen Horowitz, also called a16z, took a large but unspecified stake in the apartment holdings of former WeWork boss Adam Neumann in return for its recent $350M investment in Neumann's latest residential company, Flow, The Wall Street Journal reports.

If Neumann's new venture fails, Andreessen Horowitz will presumably keep the multifamily stakes, either to sell to someone else or hold as an investment, though venture capital firms rarely own real estate assets directly.

The $350M investment is the largest amount the Menlo Park, California-based Andreessen Horowitz has ever put into a single round of funding for a company, and it values Flow at about $1B.

Neumann left WeWork in 2019 with more than $1B after its initial public offering failed. He used much of that sum to buy about 4,000 apartment units in Florida, Georgia and Tennessee over the last two years.

Neumann has said that he wants his new company to "shake up" the rental-housing industry. Flow is reportedly going to be a residential real estate company, though its exact business model hasn't been spelled out yet.

“Adam returns to the theme of connecting people through transforming their physical spaces and building communities where people spend the most time: their homes,” Andreessen Horowitz General Partner Marc Andreessen wrote in an August blog post announcing the investment.

Flow will offer furnished apartments and flexible leases, as well as common space and social activities, something like what WeWork was designed to do, The Real Deal reports, citing people familiar with the venture. Some of Flow's tenants might be digital nomads who spend their time in different cities and do not want to commit to a conventional apartment lease in any particular place.

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's National Newsletters
Related Stories

Wall Street Impatient For Big Tech Returns On Data Center Spending

As AI Adoption Ramps Up, Half A Million Property Managers Are In The Crosshairs

Treasuries Hover Around 4.7% As Wall Street Questions If Warsh Is A 'Dove In Hawk's Clothing'

Avison Young Had Assets Frozen By Bank Over Unpaid Taxes

Camden Property Trust Sells West Coast Portfolio, Clears $1.5B Target

Churchill Downs Plans To Sell 9 Casinos, Focus On Horse Racing

Bringing Stability And Savings To CRE Insurance Through Working Layer

More Hotel Owners In Need Of Cash Are Getting It From The Big Brands

Former Arms Dealer Targeting Heartland Apartment Takeover Files For Bankruptcy

SEC Charges REIT, Its Founders With Alleged $152M Fraud Scheme

Equinix Ramps Up Spending Plans Amid Faster-Than-Expected AI Shift

Cortland, Pulte, INVH, Walker & Dunlop Execs Talk Changing Demographics, AI