Shuttered co-living company inks deal to hand over lease agreements

Aug.August 01, 2019 06:33 PM
From left: Martin Greenberg CEO & Co-Founder of Bedly and Sergii Starostin, Founder and CEO of Outpost Club

From left: Martin Greenberg CEO & Co-Founder of Bedly and Sergii Starostin, Founder and CEO of Outpost Club

Just a few days after abruptly closing its doors, co-living start-up Bedly has inked an agreement for another company to take over some of its sublease agreements.

Brooklyn-based Outpost Club will take over some of Bedly’s lease agreements at its Manhattan and New Jersey properties, the companies announced on Thursday. Bedly founder Martin Greenberg indicated that a similar second deal at its other properties will be announced soon. The value of the agreement was not made public.

“The intent here is not compensation but to make transition smooth/offer similar service to existing renters for some of our homes,” Greenberg said in an email.

The news comes after Bedly suddenly halted operations last week, catching many tenants and landlords by surprise. Brick Underground was the first to report the company’s closure, following an outpouring of complaints from tenants who were abruptly notified that their leases were no longer valid.

During a phone interview with The Real Deal, Greenberg indicated that Bedly didn’t have enough capital and resources to continue operating. All told, the company raised $7 million since its founding and had 600-plus tenants.

As part of the operational management agreement with Outpost, tenants will be permitted to stay in their apartments through the end of their current lease agreements with Bedly. Bedly’s tenants had been notified that they would need to leave by the end of August.

“We’re diligently working on a plan to make this transition go as smoothly as possible, with minimal impact on the members,” said Outpost CEO Sergii Starostin. “We’re looking forward to welcoming Bedly members into the Outpost community, and to providing them with the high level of service our members have come to expect from us.”

Greenberg touted his company’s role in increasing awareness of co-living in New York and its other markets, Boston and Jersey City. Bedly isn’t the only co-living company to face challenges in New York. Last November, Roomi laid off a majority of its staff after failing to secure more funding.

Related Articles

From left: Ollie co-foudners Andrew and Chris Bledsoe

Ollie co-founders out at co-living startup

292 North 8th Street, The Collective’s CEO Reza Merchant (Credit: Scuares via PRNewswire and Facebook)

The Collective plans $150M co-living project in Williamsburg

From left: Ben Carson and Grant Cardone

Opportunity Zones, luxury residential pricing, the diversity dilemma and more at TRD Miami’s Showcase & Forum

Brad Hargreaves and a project illustration (Credit: Francesco Sapienza)

NYC is banking on Common to deliver affordable beds

Reverend Al Sharpton and 1215 Fulton Street (Credit: Getty Images and Google Maps)

Historic Slave Theater site will soon be co-living property

Bedly CEO Martin Greenberg (Credit: LinkedIn and iStock)

After Bedly: What the demise of a startup says about the health of co-living in NYC

From left: Industrious CEO Jamie Hodari, Common CEO Brad Hargeaves, Cushman & Wakefield's Global Brokerage chairman Bruce Mosler and Newmark Group CEO Barry Gosin (Credit: Emily Assiran)

Even with an economic downturn looming, the flex-space industry will grow explosively: TRD forum panelists

The We Company CEO Adam Neumann and RXR Realty CEO Scott Rechler and 75 Rockefeller Plaza (Credit: Getty Images and RXR Realty)

WeWork is going to manage office space at RXR’s 75 Rock