Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

WeWork ex CEO Adam Neumann's buying up majority shares in more than 4,000 apartments

WeWork ex CEO Adam Neumann's buying up majority shares in more than 4,000 apartments

Adam Neumann, 42, who was ousted as WeWork CEO in 2019, has been buying up majority shares in more than 4,000 apartment complexes worth over $1 billion.
Ousted WeWork founder Adam Neumann wants to disrupt the business model of personal living spaces like he did with office buildings as the billionaire tech mogul snaps up apartment complexes around the country.

Neumann, 42, who was ousted as WeWork CEO in 2019, has been buying up majority stakes in more than 4,000 apartments valued at more than $1 billion in cities like Miami, Nashville and Fort Lauderdale, according to the

Many of the acquisitions have occurred over the past year, and friends and associates have said he wants to create a widely-recognizable apartment brand stacked with amenities as he seeks to lure in the same kind of young professionals who took advantage of WeWork's co-working spaces.

'Since the spring of 2020, we have been excited about multifamily apartment living in vibrant cities where a new generation of young people increasingly are choosing to live, the kind of cities that are redefining the future of living,' said DJ Mauch, a partner in Neumann's family office.

'We're excited to play a role in that future,' he said.

Neither Mauch nor Neumann have provided any specifics on how the plan will revolutionize the industry.

Neumann, 42, has also invested in a number of startups, such as Alfred Club Inc, a company that provides concierge services such as picking up and dropping off groceries and laundry in residential buildings, sources told the Journal.

Neumann, an Israeli-born business mogul, earned his riches as the co-founder of WeWork in 2010, and raised more than $10 billion for a business once valued at $47 billion.

In his heyday, Neumann also launched WeLive, which was planned as a network of buildings where people could rent rooms in shared, furnished apartments.

The company opened apartment buildings in New York and Virginia, but closed them down after Neumann's departure in 2019.

He left the company after plans for an IPO blew up in spectacular fashion in August of that year, resulting in investors tossing aside the eccentric CEO over his exorbitant spending and increasingly erratic behavior. He was accused of drug use and gender discrimination.

To encourage him to leave the company, majority owner SoftBank Group Corp paid Neumann nearly $200 million for consulting and other fees and bought $578 million worth of shares from him.

He continues to have an 11 percent share in WeWork, which is valued at around $722 million, reported, and is now worth $1.6 billion.

Neumann is using his riches to buy stakes in the lucrative rental sector, which has seen prices surge in many cities since the start of the pandemic.

Most of his real-estate holdings are new properties with more than 200 units and many amenities, the Journal reported.

In Nashville, Tennessee, Neumann bought Stacks on Main, a 268-unit property that features a saltwater pool, a dog park, a rooftop lounge and valet trash pickup.

Each apartment also has a Nest thermostat, and is billed on as 'the gateway to an East Nashville lifestyle without the crazy price tag.' Rents at the apartment complex start at $1,390.

Meanwhile, in in Fort Lauderdale, Florida, an 'entity tied to Neumann' owns Society Las Olas, a 639-unit apartment building that includes a co-working space, a putting green and a barber shop.

And in downtown Miami, Neumann recently signed a contract to buy a majority stake in the 444-unit Caoba apartment tower - valuing the property at roughly $220 million. The property includes a swimming pool with cabana and towel service, an outdoor game lawn and a separate sunning lawn, as well as a clubroom with a fully-equipped kitchen, billiard, foosball and media area.

Nearby, another entity tied to Neumann also owns the 387-unit Yard 8 Midtown apartment building, which seems to target millennials on its with a pitch that says: 'Home is a vibe. It's something you feel in your soul. A vibration of belonging, of something new and of endless possibilities. That's life at Yard 8 Midtown.'

The apartment complex features a swimming pool and sundeck, a clubhouse with an outdoor bar and a coffee bar.

Neumann has also reportedly invested in suburban apartments, where demand has grown over the past few years as people working remotely no longer have to commute to a city.

He holds stakes in a building in Decatur, Georgia, and another in Norwalk, Connecticut, according to the Journal.

But whether Neumann will be able to turn his reputation around remains to be seen after his widely publicized downfall.

In April, Hulu released the documentary WeWork: Or the Making and Breaking of a $47 Billion Unicorn.

And in a 2018 lawsuit, former WeWork employee Ruby Anaya alleged Neumann 'plied [her] with tequila shots during her interview with the company,' according to .

She also claimed that a male employee grabbed her, pulled her into his body and tried to forcibly kiss her. She says she was fired in August 2018 in what she believes was an act of retaliation.

Neumann's chief of staff, Medina Bardhi, also filed a complaint with the Equal Employment Opportunity Commission in New York in 2019, claiming that Neumann referred to her maternity leave as 'vacation' or 'retirement' and that she was repeatedly 'derided and marginalized by Mr. Neumann and other WeWork officials,' according to the .

In November, Neumann conceded in an interview that the company could have matured 'sooner,' saying, 'We had a fun culture.'

He also pushed back on that he had received a $ 1.7 billion 'golden parachute' to leave the company.

'This perception that as the company went from a $47 billion valuation down to $9 billion, that I profited somehow while the company was going down, is completely false,' he said.

Last year, WeWork Executive Chairman Marcelo Claure, also a SoftBank executive and executive chairman of Sprint, told CNBC that the claim is 'totally false.'
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
U.S. Goods Imports Plunge Nearly 20% Amid Tariff Disruptions
Italy Faces Population Decline Amid Youth Emigration
Trump Accuses China of Violating Trade Agreement
OpenAI Faces Competition from Cheaper AI Rivals
Foreign Tax Provision in U.S. Budget Bill Alarms Investors
Russia Accuses Serbia of Supplying Arms to Ukraine
Gerry Adams Wins Libel Case Against BBC
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
EU Majority Demands Hungary Reverse Anti-LGBTQ+ Laws
Top Hotel Picks for 2025 Stays in Budapest Revealed
Iron Maiden Unveils 2025 Tour Setlist in Budapest
Chinese Film Week Opens in Budapest to Promote Cultural Exchange
Budapest Airport Launches Direct Flights to Shymkent
Von der Leyen Denies Urging EU Officials to Skip Budapest Pride
Alcaraz and Sinner Advance with Convincing Wins at Roland Garros
EU Ministers Lack Consensus on Sanctioning Hungary Over Rule of Law
EU Nations Urge Action Against Hungary's Pride Parade Ban
Putin's Helicopter Reportedly Targeted by Ukrainian Drones
U.S. Considers Withdrawing Troops from Europe
Russia Deploys Motorbike Squads in Ukraine Conflict
Critics Accuse European Court of Human Rights of Overreach
Spain Proposes 100% Tax on Non-EU Holiday Home Purchases
German Intelligence Labels AfD as Far-Right Extremist
Geert Wilders Threatens Dutch Coalition Over Migration Policy
Hungary Faces Multiple Challenges Amid EU Tensions and Political Shifts
Denmark Increases Retirement Age to 70, Setting a European Precedent
Any trade deal with US must be based on respect not threats', says EU commissioner
UK Leads in Remote Work Adoption, Averaging 1.8 Days a Week
Thirteen Killed in Russian Attacks Across Ukraine
High-Profile Incidents and Political Developments Dominate Global News
Netanyahu Accuses Western Leaders of 'Emboldening Hamas'
Ukraine and Russia Conduct Largest Prisoner Exchange of the War
×