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

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

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

Keeping lawns freshly cut and outdoor spaces in tip-top shape could result in greater rewards for sellers. (Credit: iStock, IMDB)

Curb your enthusiasm: Homes with spruced-up outsides sell at premium

Elsa Segura (left) was arrested in connection to realtor Monique Baugh's (right) murder (Credit: iStock)

Second suspect charged in real estate agent’s abduction, murder

Clockwise from top left: John Gomes, Ronita Kalra, Eric Beniam and McKenzie Ryan (Credit: Getty Images, iStock, Wikipedia)

“We’re putting ourselves in situations where anything is possible”: Real estate agent’s killing rattles industry

As the years go by_A look back at 17 years of real estate history

A look back at 17 years of real estate history

157 West 57th Street (Credit: iStock)

One57 condo with reduced ask tops a slow week of luxury contracts

Clockwise from top left: 730 Fifth Avenue, Unit #PH21; 730 Fifth Avenue, Unit #18A; The Pierre, Unit #3101; and The Park Imperial, Unit #64

Priciest homes listed last week include $60M pad at Crown Building

250th Issue

The Real Deal celebrates 250 issues

From left: Publisher and founder Amir Korangy, Editor-in-chief Stuart Elliott and VP of Corporate Development Yoav Barilan

TRD’s founders share war stories from over the years