No buzz, but Adam Neumann will take the $293M

Ex-WeWork whiz teams with Invictus on traditional real estate deal

Tri-State /
May.May 24, 2022 05:30 PM
Adam Neumann with 515 West Avenue (Wikipedia, Realtor, iStock)

Adam Neumann with 515 West Avenue (Wikipedia, Realtor, iStock)

Who needs sexy when profitable will do? Adam Neumann’s latest reinvention has the former WeWork whiz doing real estate the old-fashioned way.

Neumann’s family office, 166 2nd Financial Services, and Invictus Real Estate Partners combined to sell a two-property multifamily portfolio in Connecticut for $293.5 million, the Commercial Observer reported. The partners purchased the Norwalk assets for $226 million fewer than two years ago.

The properties are the Waypointe at 515 West Avenue and the Berkeley/Quincy Lofts at 30 Orchard Street. Beachwold Residential is the buyer in the transaction, which was arranged by a Cushman & Wakefield team including Adam Spies and Adam Doneger.

Invictus picked up the Waypointe in 2020, buying Carmel Partners’ 90 percent stake in the 464-unit complex at a price valuing the property at $157 million; Invictus already owned a 10 percent stake. The two-building complex, which opened in 2015, includes 56,000 square feet of ground-floor retail and restaurant space.

The Berkeley and Quincy Lofts opened in 2017. The buildings, one block apart, combine for 198 units. They were purchased in February 2021 for $69 million.

The purchase price on the 662-unit combined assets works out to more than $440,000 per unit.

Neumann’s foray into residential real estate has quietly been taking shape in recent years. In January, the Wall Street Journal reported that entities tied to Neumann purchased majority stakes in more than 4,000 apartments across the country, largely in Sun Belt cities. The holdings are valued at more than $1 billion.

Neumann is reportedly looking to build an amenity-heavy rental brand, targeting younger renters. He also likely wanted something to depreciate so he could offset the taxes on his lucrative WeWork exit package.

Neumann was forced out at WeWork after a calamitous sequence of events frittered away billions and ruined its initial shot at an IPO. As part of his buyout, Neumann received a $245 million stock award early last year. He has also received $200 million in cash and the refinancing of a $432 million loan.

In November, New York-based Beachwold secured more than $53 million in acquisition financing for the purchase of Glenview House in Stamford. The 146-unit multifamily complex includes a courtyard with a pool and barbeque area, a fitness center, a business center and a billiards room.

[CO] — Holden Walter-Warner





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