Adam Neumann’s Flow Chooses Saudi Arabia For First Location Outside The U.S.

Flow, the residential startup started two years ago by WeWork founder Adam Neumann, is taking its first steps outside the U.S.

The Miami-based company is planning three apartment buildings in Riyadh, Saudi Arabia, Bloomberg reports. Flow has created an entity in the country and will work with local investors to develop the three properties, which will have a total of 920 units.

“Saudi Arabia presents a tremendous opportunity to invest in a place with dynamism and growth,” a Flow spokesperson told Bloomberg. “We are proud to bring our product to the region and help address a growing market need.”

Flow didn't immediately respond to Bisnow’s request for comment.

The company reportedly plans to continue to own and operate the buildings, one of which has already opened and is expected to deliver before the end of the year. The other two buildings are expected to open in the first quarter of 2025.

Rents in the Riyadh properties will average $4,262 per month for furnished units and $2,843 per month for unfurnished units, Bloomberg reported.

Flow got a $350M investment from venture capital firm Andreessen Horowitz in 2022 when it was first kicking off its operations. It now owns six buildings in the U.S. and operates two of them.

Andreessen Horowitz cofounder Ben Horowitz told Bloomberg he was excited for Flow’s expansion into Saudi Arabia.

But the two-year-old startup has reportedly faced difficulties with its U.S. business since last summer at two properties it owns minority stakes in, with crowdfunding platform YieldStreet functioning as the majority owner.

Flow began struggling to drum up enough cash to pay its mortgage at the luxury apartment building it bought at Nashville’s Stacks on Main in June 2023. Lenders watchlisted the Rialto Capital-originated loan as a result, The Real Deal reported at the time.

YieldStreet opened two funds to generate capital for Stacks in January, stating that “investors should not expect to receive distributions” until the building sells at a later date.

Another Nashville property, 2010 West End Ave., is also struggling. YieldStreet had to warn its equity investors that their investments might be wiped out, Business Insider reported in July, with lenders reportedly exploring a recapitalization or debt restructure at the time.

“Flow is a minority, non-controlling shareholder, and the building remains current on its obligations,” a spokesperson for Flow told Business Insider at the time.