Adam Neumann's Flow Pays $116M For Miami Office Building, 500-Unit Development Site
Adam Neumann is back in the spotlight, with the WeWork co-founder's real estate firm partnering to buy a Miami office building on an expansive site zoned for two residential towers.
Flow and Israeli investment firm Canada Global acquired the Aventura Corporate Center for $116.2M, according to Tel Aviv Stock Exchange filings reported by the South Florida Business Journal.
The partner secured an $80M acquisition loan from Ladder Capital Finance.
New York-based seller Stonecutter Capital Management, led by Scott Zucker and Robert Kunzweiler, originally acquired the site in 2021 for $140M. It financed its purchase with a $112.8M loan from Ladder Capital in 2021, according to the Reonomy property database.
Stonecutter secured approval in 2023 to rezone the 10 acres at 20801, 20803 and 20807 Biscayne Blvd. for two 24-story towers that would include 495 apartments and 39K SF of commercial space. The sale represents a 17% loss before accounting for the expenses incurred to entitle the site for mixed-use development.
Neumann contributed a total of $36M toward the deal, $11M of which came from Flow and the remaining $25M from his September purchase of a 30% stake in Canada Global, CTech reported. Asaf Tuchmair and Barak Rosen co-own the majority of Canada Global.
The Aventura Corporate Center is a 253K SF office building constructed in 1986 and expanded in 2007 alongside 931 surface parking spots. The building is 92% occupied, according to the filing, and its income is projected to generate a 7% return on investment.
Flow, the Miami-based residential real estate company Neumann founded in 2022, would be responsible for asset management including day-to-day operations and living experiences, CTech reported.
Neumann’s new venture was a follow-up to his rollercoaster journey with WeWork, which he founded in 2010 alongside Miguel McKelvey in New York City. The company grew rapidly before filing for an initial public offering in 2019 that revealed significant financial losses and questions about management, ultimately leading Neumann to step down from his CEO position. In 2023, the company filed for bankruptcy.
Neumann reentered the game with Flow, which received a $350M investment from Andreessen Horowitz. The company now has properties in Fort Lauderdale, Miami and Saudi Arabia. He also tried and failed last year to buy WeWork out of bankruptcy. It was taken private instead by an investor group led by Yardi Systems CEO Anant Yardi.
That hasn't stopped him from returning to the coworking sector. He launched a WeWork competitor, Workflow, last month, with plans to build out locations at Flow properties and manage spaces for other landlords. His plans for the first office building in Flow's portfolio remain to be seen.
CORRECTION, NOV. 27, 3:20 P.M. ET: A previous version of this story incorrectly stated that Flow received a 5% fee for finding the acquisition target. The story has been updated.
