Common Co-Living

Question

Anyone here know anything about this new co living firm? Also what are your guys thoughts on co living?

The Duke of Wall Street · Accepted Answer

Agreed that the rent per square foot is killer. However, who are the long-term tenants for these? The way I see it, the co-living spaces are great for a recent college graduate who is moving to a new city and doesn't have any friends or a significant other to live with. For those people, living in a co-living space is likely the best bang for their buck.

For those who have potential roommates (friends or a significant other), they would choose to live with them in a traditional apartment since the quality-of-life relative to the cost is much better.

mIRRacle · Answer

Just came across this thread. Got a hold of an OM for a fund in which 2 properties were conversions of multifamily to co-living. OM advertised 45% higher rent PSF and 30% higher NOI PSF compared to if property was renovated and kept as multifamily. They stated asset would generate 2x as many beds. Big value proposition to a niche demographic- rents are much cheaper.

I feel the potential market for this could be larger than it looks. How many young adults choose to live out in the suburbs alone or with roommates because they can't afford to live in the city?

Brody92 · Answer

As someone that lives in a coliving appartment, I can attest to the spread between what is paid by the coliving tenants and what can be attained in the open market. I live in a 3 bedroom apartment. Three rooms are individually rented out. All three tenants pay $1000 each. From my perspective its a win because for $1000 I will not even get a studio.

REfuturesee · Answer

So I have significant experience  in the space. I have worked on a bunch of Co living transactions. The real money is in value add transactions  and not ground up deals. You buy an existing  assets and can really jack up the NOI/per sqft. As someone noted before that max leverage  is reduced  but in these markets cap rates are so compressed  that you end up with 10-15% higher leverage  on these deals.These deals do make money but there isnt a real liquid  market on the sell side for these assets so it's a long term play.

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Common Co-Living

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Common Co-Living

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