Common Takes Off in LA, Triples Management Pipeline
As it plans to manage $300MM of real estate in LA by the end of 2021, Common bets big on the resurgence of cities
LOS ANGELES, May 7, 2021 /PRNewswire/ -- Common, the nation's leading residential brand that designs, leases, and manages multifamily properties that appeal to today's renters, today revealed that Los Angeles will become its biggest market in the US. Between now and the end of 2021, the company will open 1,125 units throughout Los Angeles starting with 5800 Harold by Common in Hollywood, Common Beverly in Hancock Park and Common Paramount in Hollywood. In addition to its 2021 pipeline, Common has 1,800 units under development in the Los Angeles area set to open through 2024. Having delivered a strong leasing and operating track record at its existing LA portfolio despite COVID-19, Common's expansion marks their continued growth and commitment to both elevating apartment living and adding reliable housing stock in the city.
Common entered Los Angeles in 2019 with its original coliving offering at Common Melrose in partnership with Category Company, but has seen tremendous growth in traditional multifamily management in the past year with the 260 unit Stella by Common building opening in 2020. Last March, during the first wave of COVID-19, Common began leasing and managing coliving units at Common Elmwood and completed lease-up of the 141 bed building in just under six months despite having to shift to 100% virtual tours. As of March 2021, the occupancy of the building is at 94%. Common continues to see an influx of renters to the Los Angeles area despite COVID-19 with over 3,000 new leads in the area a month. In addition to Elmwood, all of Common's 2019 and 2020 LA openings have an occupancy rate of above 94%. The expansion signals that renters are continuing to seek out high quality attainable apartments in big cities and looking for housing solutions that offer community after the isolation brought on by COVID-19.
"Los Angeles is a top priority market for Common which is why we're putting in the effort to ensure people can find high quality attainable housing in a city that is dominated by hard to find multifamily properties managed by unreliable landlords," said Amalia Paliobeis, Senior Managing Director of Real Estate at Common. "Being able to give our real estate partners high NOI while simultaneously creating cheaper rent for residents is a win win for us. We're so lucky to have partners that share our vision for innovation and are committed to providing better housing options throughout Los Angeles."
As part of the over 1,100 unit pipeline in 2021, Common Beverly and Common Paramount will also be opening. Common Beverly is the next property to open in a multistate portfolio-partnership being developed by Category Company and managed by Common. The building will feature a mix of coliving and traditional units in a design forward space. Common Paramount is also the second building Common is managing in partnership with Wiseman Residential and will feature a hybrid of coliving and traditional units with building amenities like a rooftop deck for residents to enjoy. With both of these buildings opening, Common is leveraging the success it had with Category Company at Common Melrose and with Wiseman Residential at Common Elmwood.
"As the regulatory maze grows more complex, material prices and soft costs continue to rise, and incomes hard-hit, we have only become more motivated to tackle the systemic issues surrounding housing," said Daniel Pourbaba, CEO of Category Company. "Cities will always be ideal engines for social interaction and economic prosperity, but the health and quality of the housing market is a key requirement to any city's long term success. Category has been laser-focused on solving this problem through a variety of process, design and technology initiatives that when coupled with Common's experiential approach to property management has proven that we can deliver beautiful, locally-inspired, and desirable homes at scale.
To meet the evolving demands of Los Angeles residents, Tanner & White Properties made the strategic business decision to replace their previous institutional manager by partnering with Common at 5800 Harold in Hollywood to elevate the residential experience at the architectural property. The building consists of mostly traditional units with 56 apartments, including eight (8) 3-bedroom floor plans wherein Common is set to onboard additional coliving units in line with Tanner & White's strategy to provide a new, lower entry price point to this luxe building. 5800 Harold by Common also has a community lounge and expansive lobby adorned with original art for residents to enjoy that includes coworking spaces to meet the needs of those working from home.
The additional 1,800 units under development will open in the next few years across LA and will consist of a mix of traditional and coliving units. Common has over 20,000 signed units opening in 22 cities across the globe, and continues to disrupt the property management space. The residential brand expects to have over 8,000 units under management by the middle of 2021. Of Common's current 5,000 unit portfolio, about half is coliving, rented furnished by the bedroom for roommates in shared apartment units, and half are traditional multifamily apartments. This past year Common announced a 400 unit expansion in Philadelphia, added former Deputy Mayor of New York City to its Board of Directors and raised $50 million in its Series D venture capital funding round from Kinnevik.
For more information visit Common.com.
About Common
Common is the leading residential brand and property manager that designs, leases, and manages multifamily properties that appeal to today's renters. Through smart design and tech-enabled property management, Common delivers exceptional experiences across ten cities and over 5,000 members in coliving, microunit, and traditional apartments. We are the preferred choice for both residents looking for a stress-free and all-inclusive living environment from a trusted brand, and for real estate owners seeking reliable, above-market returns. The Common platform also includes workforce housing management brand Noah and family-first urban designer and operator Kin. With over 20,000 units signed and under development and over $110 million in venture capital investment, Common is expanding into 22 cities across the world. To work with us, visit our partners page or follow us on instagram at @common.living.
Media Contact: Phoebe Dinner, [email protected]
SOURCE Common
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