PMG, Raven plan $1B worth of co-living units

Kevin Maloney’s firm and PE group say they have $300M in committed equity

National /
Nov.November 28, 2018 04:45 PM

Raven president Josh Green (orange), PMG principal Kevin Maloney (purple), and X Logan Square in Chicago (Credit: Raven, Getty Images, and PMG)

Less than two years after Property Markets Group launched its own co-living business, the Kevin Maloney-led firm said it has $1 billion worth of inventory in the hopper.

In partnership with Raven Capital Management, a New York-based private equity firm, PMG has committed $300 million in equity to building X Social Communities, which it described as a multifamily housing division. XSC has 10,000 units in the pipeline nationwide, according to Noah Gottlieb, a principal at PMG.

Ryan Shear of X Social Communities

“Our product provides incredible value to our customers,” he said, noting that unlike companies like Ollie or Common, PMG is both an owner and operator of co-living properties.

According to Gottlieb, PMG isn’t trying to create a niche market. “We are intent on cannibalizing the existing apartment universe,” he said, by developing luxury units that can be rented by the bedroom. Ryan Shear leads X Social Communities.

Between 20 percent to 50 percent of units in each development have a “Rent by the Bedroom” component. “It’s important for our customers to be able to graduate within our building,” Gottlieb said.

Last year, PMG became one of the first major developers to jump into co-living — a segment of the market mostly dominated by specialized companies until now. It currently offers co-living at the 120-unit X Logan Square in Chicago, the 99-unit X Chicago and the 464-unit X Miami.

Planned apartments include the 650-unit X Las Olas in Fort Lauderdale and the 220-unit X Denver, both set to open in 2020. Other projects are in the works in Orlando, Phoenix and Oakland.

In addition to PMG, other major developers who’ve gotten into co-living include the Durst Organization, which is testing the concept at its Frank 57 West. Boston Properties, Vornado Realty Trust and Rudin Management have partnered with, or invested in, niche companies like Common, Ollie and Founder House.


Related Articles

arrow_forward_ios
One Brooklyn Bridge Park units 427/8 and 1115 (StreetEasy, Google maps)
One Brooklyn Bridge Park condos top Brooklyn luxury market
One Brooklyn Bridge Park condos top Brooklyn luxury market
The Ritz-Carlton New York NoMad (The Ritz-Carlton New York, Illustration by Priyanka Modi for The Real Deal with Getty)
Ritz-Carlton NoMad model nails short-term rental loophole
Ritz-Carlton NoMad model nails short-term rental loophole
95 Charles Street (Illustration by Kevin Cifuentes for The Real Deal with Getty, Streeteasy)
Manhattan luxe sees 28 contracts signed in first half of August
Manhattan luxe sees 28 contracts signed in first half of August
740 Park Avenue and Corcoran broker Francine Crocker (Corcoran, Getty)
Tower of power: Duplex at 740 Park listed for $26M
Tower of power: Duplex at 740 Park listed for $26M
Douglas Elliman’s Kirsten Jordan and 2728 Thomson Avenue in Queens (Corcoran, Douglas Elliman, Getty)
TRD Pro: Queens’ priciest home sales in the second quarter
TRD Pro: Queens’ priciest home sales in the second quarter
Seattle Seahawks receiver and newly-licensed realtor Tyler Lockett along with 812 245th Place Northeast in Sammamish, Washington (Photo Illustration by Steven Dilakian for The Real Deal with Getty Images and Redfin)
NFL star earns his real estate wings
NFL star earns his real estate wings
Toll Brothers' Douglas Yearly and property at Sparks, Nevada (Toll Brothers)
“Honey, I bought the town:” Buyer ends up with big chunk of subdivision
“Honey, I bought the town:” Buyer ends up with big chunk of subdivision
75 Park Lane South (Plaza Construction)
This year’s top-selling Hudson County homes
This year’s top-selling Hudson County homes
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...