Adam Neumann is again in the true property sport with a brand new project and a heavyweight backer.
The WeWork founder is ready to release Drift, a multifamily marketplace project, subsequent 12 months. The corporate has the backing of distinguished project capital company Andreessen Horowitz, which has invested about $350 million into the corporate, the New York Occasions reported.
The funding from Marc Andreessen’s company is the most important the corporate has ever reduce for a investment spherical. Drift is valued at greater than $1 billion, in spite of no longer but formally launching.
Andreessen might be a board member of the project upon its release. In a weblog submit detailing the verdict to speculate, the investor lamented on tight stock and wrote of a need to disrupt the condo actual property marketplace.
The announcement comes after the Atlantic reported Andreessen contacted native officers to oppose a proposed mutlifamily building in Atherton, a Bay Space suburb that encompasses the rustic’s costliest zip code. The Occasions known a slew of main tech and project capital gamers antagonistic to the plan, which might give a contribution to the world’s compliance with state housing necessities.
For Neumann’s first post-WeWork project, “the successes and courses are lots,” Andreessen wrote.
The primary inkling of Neumann’s newest project emerged previous this 12 months, when it the Wall Side road Magazine reported entities related to Neumann bought majority stakes in additional than 4,000 residences around the nation. The holdings had been valued at greater than $1 billion and had been positioned in large part in Solar Belt markets, similar to Atlanta and Nashville.
Whilst main points of Drift’s marketing strategy aren’t public, Neumann plans to make a big private funding within the startup via money and actual property property. The corporate will create a branded product with constant neighborhood options and repair around the portfolio.
Neumann stepped again from public existence for a while after the implosion at WeWork, which compelled him out of the corporate he co-founded. The corporate used to be as soon as valued at $47 billion, however drama on the co-working massive led to a shelved IPO held till November, when it reported a lack of $802 million; its present marketplace cap is simply over $4 billion.
Neumann’s ouster from WeWork supplied conceivable capital for subsequent ventures. His go out bundle integrated a $245 million inventory award, granted early in 2021. He additionally won $200 million in money and had a $432 million mortgage refinanced.
— Holden Walter-Warner
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