Common Unveils $300M, 4-City Expansion Plan
- Apr 03, 2019
Co-living brand Common has announced a major expansion plan that will entail the firm opening communities in four new cities across the U.S. over the next three years, with an investment of more than $300 million.
Common, which opened its first co-living concept in New York City in 2015, plans to launch new, ground-up communities in Philadelphia, Atlanta, Pittsburgh and San Diego. The company currently has 24 communities open in New York City, Chicago, San Francisco, Oakland, Calif., Los Angeles, Seattle and Washington, D.C., and has previously announced plans for communities in New Orleans and Newark, N.J.
Of the cities, Common’s plans for Philadelphia are the most fleshed out. There, Common will partner with Elk Street Management to build Common Frankford, a 72-bed co-living community in the Fishtown neighborhood, in early 2020. Rents will start at $995 per month for residents and will offer a mix of co-living suites, studio and one-bedroom apartments. The property will provide fully-furnished shared lounges and shared kitchens, in-unit laundry, bike storage and an outdoor terrace. Common has a total of $100 million invested in Philadelphia for new co-living communities with more than 1,000 beds.
In the three other cities part of the expansion plan, Common has significant investments and is planning partnerships with developers. In Pittsburgh, Common is investing $75 million in new co-living projects and is working with multiple developers to build more than 300 beds. In Atlanta, Common is partnering with Domos—a joint venture between Civitas Communities and Real Estate Asset Partners—which will invest $75 million to build 600 co-living beds. And on the West Coast, Common has plans to build $60 million in new co-living developments in San Diego, in partnership with other developers and architect and developer Jason Maune.
FILLING THE GAPS
Common chose the four metro areas based on the need for more rental housing at affordable prices, according to Common founder & CEO Brad Hargreaves.
“With a major presence in six metro areas, we’ve seen a real need for innovative housing solutions in growing, mid-size cities that are facing challenges of rising rents and demographic change,” said Hargreaves, in prepared remarks. “Philadelphia, Atlanta, San Diego, and Pittsburgh present Common an opportunity to offer cheaper rent, needed density, and amenities that foster community.”
Last month, Common partnered with Tishman Speyer at a three-building, 1,800-unit New York City community to launch Kin, a new family-centric shared space concept geared toward helping families raise children in a cooperative environment.