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After funding round, NeueHouse co-working expands in LA
The NY firm, which tapped a former Related executive as CEO, has scaled back its growth plans
In the increasingly competitive co-working market, not all firms that open sleek spaces and free-flowing beer will survive. NeueHouse, fresh off a $30 million funding round, is trying to position itself to be among those that do, while also scaling back on its plans for growth.
The upscale shared office provider said it will expand with two new locations in Los Angeles, in Venice and Downtown, the Wall Street Journal reported. Both are scheduled to open in 2019. The New York based firm already has one location in L.A., at 6121 Sunset Boulevard, along with its Manhattan location at 110 E. 25th Street.
Much of the company’s new funding came from media executive Barry Diller and his wife, fashion designer Diane Von Furstenberg, who invested $8 million late last year. Gaw Capital Partners, a Chinese investment firm that owns 3030 Studios in Atwater Village, also made an investment.
As part of the revamp, NeueHouse also hired Josh Wyatt as its new CEO. Wyatt had served as president of Related Hotel Properties, where he worked on the new Equinox luxury hospitality brand opening in Manhattan’s Hudson Yards.
Like many other co-working companies, NeueHouse had far-reaching expansion plans that involved opening branches in Shanghai, China; in addition to Washington, D.C., among other places. Those plans never materialized because previous management failed to close the deals, Wyatt told the Journal.
The company now plans to open smaller locations of about 25,000 square feet, in North American cities like Nashville, Tennessee; Austin, Texas, San Francisco and Toronto.
Combined, the firm has 1,500 members at its Manhattan and Hollywood locations. Its membership rates are among the highest in the industry, starting at $900 a month. [WSJ] — Natalie Hoberman