As WeWork weaves through bankruptcy, Adam Neumann is hoping to cash in on his latest venture, Flow.
Neumann will officially launch the first property under the Flow banner early next year, Insider reported. The 639-unit Society Las Olas property in Fort Lauderdale is already owned by the startup, home to residents and a plethora of staff.
The vibe of the property is not far from the familiar WeWork aura: The lobby is adorned with neon signs on the wall, colorful furniture and ample greenery, though an updated redesign is already in the works. Amenities include those commonplace at luxury multifamily properties, such as a pool and an outdoor garden.
There’s also a technology bent to Flow: An app is being developed as the core of the company and the resident experience, a place for messages between tenants, maintenance requests for management and a virtual key to elevators and rooms.
At the end of the day, however, Neumann’s Flow appears to be a classic apartment management play with the promise of a more conscious community. That means more staff, community events and the potential for flexible lease arrangements.
Outside of the residents’ communication app, it’s unclear why Flow was valued as a tech startup, but this didn’t stop tech investor Andreessen Horowitz (also known as a16z) from investing $350 million into the company at its unveiling. That investment boosted the company’s value to a cool $1 billion instantly.
There are other gaps between what was expected and what appears to be happening, at least so far. Discussions of value sharing with tenants — perhaps a rent-to-own program — have given way to proposals more akin to frequent-flier miles.
At a summit earlier in the year, Neumann said the startup wanted “to create an elevated experience for the resident, and we want to find a way to share with the resident a portion of the value that they create.” What that means remains a mystery.
It’s also not clear if Flow will be more centered on the ownership or operational side of the multifamily market. Flow owns six properties in the Sun Belt, spending more than $1 billion to acquire the assets. Flow has not yet announced its launch of other properties, which span more than 4,000 units overall.
— Holden Walter-Warner
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