LOS ANGELES, CA - Common, the nation's leading residential brand enhancing the quality of living for members and value of real estate for partners through convenience and community, today announced a seven-home, $100 million expansion in Southern California with Proper Development, making the duo the largest coliving operator and developer in Southern California. Over the next few years the partnership will bring more than 600 beds to Los Angeles alone, leading Common's overall 1,500+ bed expansion in California.
"Common is making a major commitment to Los Angeles, which is on track to be our second biggest market after New York," said Brad Hargreaves, founder and CEO of Common. "LA has a major shortage of purpose-built multifamily projects, but the city is rapidly growing, with the population expected to increase by one million people in the next two decades. We know that coliving is the solution to housing these new residents, and we are working with some of the best developers and investors to deliver community-focused, convenient, all-inclusive living at prices that are affordable for working professionals."
Common and Proper Development's first home in Los Angeles, Common Melrose, brought high-design and luxury living to LA at price points dramatically more affordable than getting a newly-built one-bedroom or studio in the same area. The home leased up in record pace, showing strong demand from a broad pool of renters who are increasingly priced out or paying an unsustainable portion of their income on rent. For LA, Common and Proper Development see the need for rent prices to be competitive and accessible compared to other market-rate housing in the city.
"The urgency to develop market-rate housing at accessible price points is tremendous," said Daniel Pourbaba, founder and CEO of Proper Development. "It's increasingly difficult to find accommodations in Los Angeles that can be supported by average and median income levels, especially for brand-new construction. By coupling Proper Development's multifamily development program with Common's coliving property management service, we are excited to deliver custom-built projects in the $1300-$1800 monthly rent range, with the added benefits of beautifully furnished and amenitized living."
Leading developers and investors have taken note of the demand for coliving in the city. JAM Capital Real Estate, Justin Mateen's Real Estate division has invested over $25 million in Proper Development's coliving projects over the last few years with plans to double that figure to $50 million of investment this year.
"Multifamily development has been slow to adapt to the needs of modern renters, but now that lenders are increasingly recognizing coliving as an attractive asset class, we are seeing an influx of institutional capital entering the market looking to co-invest with us," said Justin Mateen, owner of JAM Capital Real Estate.
Common opened its first New York City home in 2015, and has since grown to serve 23 buildings in six markets, meeting their high consumer demand of 2,500 nationwide applications per week. With its rapid national expansion, Common recently announced a 223-bed home Common Addams, the largest coliving home in the Midwest. Common's signature approach to end-to-end property management and technology allow the operator to deliver unparalleled experiences for residents looking for a stress-free, community-focused, and all-inclusive living. Rent at Common homes utilities, high-speed wi-fi, beautifully designed and furnished apartments, weekly cleanings of shared spaces, shared supplies, and hospitality-grade amenities. Everything from applying, paying rent, contacting staff, and planning events with neighbors can be done seamlessly online through their purpose-built technologies.
Proper Development is a leader in creative, solution-oriented development. They expertly build residential, multifamily, and commercial projects with an unrivaled level of artistry and sophistication. Using advanced construction techniques and production building processes, their team is able to keep costs down and create beautifully crafted developments at more affordable prices.