WeWork, WeLive, WeMoveOn?

The company's community housing project isn't going according to plan

Miami /
Nov.November 05, 2017 04:00 PM

From TRD New York: WeWork’s expansion plans for its housing communities, known as WeLive buildings, haven’t met the company’s expectations, perhaps due to the fact that some tenants view it as a temporary crash pad, not a long term home.

Known for renting co-working space around the world, WeWork has been striking big deals, buying Blackstone Group’s London offices for $785 million and buying Lord & Taylor’s Manhattan flagship for $850 million, amid questions about the company’s profits and valuation, as The Real Deal reported.

Its expansion into offering housing and hotel rooms started several years ago with WeWork’s projections in 2014 forecasting that the company would operate 36 WeLive housing communities by the end of 2017. Fast forward to the present, and the company only has two such buildings: in New York and Washington, D.C., and the experience leaves something to be desired, according to Bloomberg who interviewed some former residents.

“It’s a great place to be if you’re just moving to the city, and you want to meet people, or you need a place for a couple months before you find your real apartment,” a former tenant told Bloomberg.

The main issue seems to be rents aren’t competitive enough considering the services, or lack thereof. A New York WeLive studio goes for about $3,000 and some disgruntled previous tenants say hot water shortages and inconsistent mail deliveries caused them to move out.

Yet, other residents love their life in the buildings, which have been compared to scaled up college dorms: “I get this amazing quality of life. The only thing I lack is a door and a wall,” said New York WeLive tenant Raviv Nadav to Bloomberg.

Jim Woods, head of WeLive, told Bloomberg WeWork is still pursuing the housing developments; there are plans for a new WeLive building to open in Seattle in 2020.

[Bloomberg] — E.K. Hudson


Related Articles

arrow_forward_ios
The current Miami Beach North Shore library with Mayor Dan Gelber (Google Maps, Gelber)
Miami Beach seeks buyers for city-owned development sites
Miami Beach seeks buyers for city-owned development sites
The partially collapsed 12-story Champlain Towers South condo building (Getty)
Inside the tug-of-war over the Surfside condo site’s future
Inside the tug-of-war over the Surfside condo site’s future
 Adam Neumann (Getty, Bal Harbour Florida)
Ex-WeWork CEO Adam Neumann inks $44M deal for Bal Harbour properties
Ex-WeWork CEO Adam Neumann inks $44M deal for Bal Harbour properties
Fuse Group Investment CEO Eyal Peretz and attorney Michael Ehrenstein (Fuse, Ehrenstein Sager, Twitter via GUT Miami)
Fuse Group acquires Security Building in downtown Miami, plans to sue WeWork for alleged lease breach
Fuse Group acquires Security Building in downtown Miami, plans to sue WeWork for alleged lease breach
Alex Sapir and Giovanni Fasciano with Arte by Antonio Citterio in Surfside (Photos via Arte by Antonio Citterio/PR Newswire)
Miami penthouse sets cryptocurrency sale record: $22.5M
Miami penthouse sets cryptocurrency sale record: $22.5M
(iStock)
South Florida resi construction starts soar in March
South Florida resi construction starts soar in March
Eden Multifamily heads Jay Massirman and Jay Jacobson with Cypress Equity Investments CEO Michael Sorochinsky (rendering courtesy of MSA Architects)
Eden Multifamily, Cypress Equity score $24M construction loan for Tamarac apartments
Eden Multifamily, Cypress Equity score $24M construction loan for Tamarac apartments
(iStock)
Home prices across globe hit records, prompting worries of bubble
Home prices across globe hit records, prompting worries of bubble
arrow_forward_ios

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

Loading...