Brookfield Property Partners will partner with Airbnb’s spinoff Niido by investing up to $200 million to buy up multifamily properties and “optimize” them for home-sharing and “flexible living” over the next few years.
The deal will see Brookfield taking a 25 percent cut of revenues for every apartment subleased through Airbnb at the Niido properties, including planned housing in Miami, Fort Lauderdale and Tampa, Bloomberg reported. Brookfield will start with a $20 million investment into a 324-unit Niido property in Kissimmee, Florida.
New York-based firm Silverpeak Real Estate Partners also invested $20 million of equity into the venture.
Tenants will lease units at Niido properties on a yearly basis, but can rent them out for up to 180 days through Airbnb. A Niido app will offer services including “calendar management, amenity booking, and keyless entry,” for both tenants and their subleasees, according to a release.
The Kissimmee complex will feature large common areas and flexible room setups that will allow renters to convert them from an office to a bedroom for guests, for example, according to the Architects Newspaper.
The building is expected to start leasing in early 2018 and rents will start at around $1,300 foor a one-bedroom apartment, according to Bloomberg.
Niido itself is a partnership between Airbnb and Miami-based Newgard Development Group, and the properties it develops with its partners at Brookfield will be branded “Niido Powered by Airbnb,” the release noted. Airbnb will be a “branded partner” but will not actually hold any ownership stake in the Kissimmee property. [Bloomberg] — Dennis Lynch