Common has entered into an agreement with Starcity to assume management of the majority of its open properties portfolio. It will also work with the owners and developers in connection with its development pipeline.
The arrangement includes 7,481 new units in cities around the world, most of which are co-living properties.
Designing and managing multifamily real estate in formats ranging from co-living to microunit and conventional apartments, Common currently has 6,400 units under management, with more than 26,000 units signed and under development.
The co-living segment has changed and consolidated during COVID-19. But Common benefited from a $50 million Series D funding round last summer, positioning the brand to be the most globally recognized property manager. It also profited from a consistently high level of occupancy across its buildings.
The Starcity agreement follows Common’s selection to manage five Class A buildings from former co-living and traditional management firms. Those buildings are in New York City, Washington, D.C. and Chicago. Last week, Common was appointed to manage 419 co-living beds in Long Island City, N.Y.
Common intends to have 14,000 units under management by the end of this year. The company plans continued swift growth in more than 10 cities including London, which will see the opening of Common’s first office in the British capital.
In the past year, the company has expanded by almost 400 units in Philadelphia, and by more than 1,000 units in Los Angeles. Common also initiated a national RFP competition for a hybrid residential/workplace called Remote Work Hub. Completion of the transaction is subject to customary comments by Starcity’s creditors and shareholders, as well as approval by various of Starcity’s real estate partners.