Co-living: an idea whose time has come — at least twice, so far.
One year after the pandemic drove Quarters into bankruptcy, the co-living firm’s flagship property in Williamsburg has hit the market. Developer David D. Dweck is looking to sell the 160-bedroom, 62,600-square-foot campus on North 6th Street between Bedford and Driggs Avenues, for $65 million.
A multifamily building and a townhouse include four- and five-bedroom apartments, which and rent for $2,000 to $3,000 per month depending on the size and length of stay, according to marketing materials for the property.
James Nelson and David Shalom of Avison Young are brokering the sale.
Co-living faced a sharp decline in demand after the pandemic turned its selling point — community offerings in exchange for smaller private bedrooms — into a health liability. But those times, and the rent concessions rolled out in response, seem gone.
The CEO of Outpost Club, which manages 1,800 co-living units in New York and took over management at the Williamsburg buildings, said high rents elsewhere in the market are a buoy for co-living despite hits to some players.
“Some companies who weren’t cautious with their cost side entered bankruptcy,” chief executive Sergii Starostin said. “Others who were cautious became bigger and stronger.”
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Starostin’s comments come shortly after another co-living firm, Cohabs, announced a $450 million expansion plan with funds from investors including Ivanhoé Cambridge.
The downfall of Quarters, created by Berlin-based Medici Living, followed a $300 million pledge from investor Ralph Winter in late 2019 to expand the company. Months later, social distancing orders responding to the spread of the pandemic made co-living untenable.
“They would be kicking themselves and would love to take it back,” said building owner Dweck. “But they are out of business.”