Common, a coliving company managing properties across the US and Canada, filed for bankruptcy last week. What will become of the 17,500 units they managed or planned to manage is now uncertain. Outpost Club, an emerging competitor, has already made seven deals with landlords previously affiliated with Common. Outpost’s objective now is to take over 50% of their portfolio.
Outpost Club attributes Common’s failure to its aggressive growth strategy, which was heavily reliant on multiple rounds of investment raises totaling $110 million. Unlike Common, which outsourced many operational aspects, Outpost maintains in-house control over technology, onsite teams, and customer service, leading to greater efficiency and cost management. “We have found a way to do what Common could not, as well as how to refinance the properties,” says Sergii Starostin, Outpost’s founder and CEO.
This is not the first time Outpost has pursued growth in this way. In the past, they assumed management of Bedly’s properties in Manhattan and New Jersey, as well as properties from other failed coliving operators like Stoop and the Quarters brand. This is not even the first time Outpost has assumed management from Common; when landlords were dissatisfied with Common’s performance prior to bankruptcy, Outpost has stepped in to fill the void. Now recognized as New York’s leading coliving and real estate management group, Outpost continues to pursue its mission of making apartments easier to find and more affordable by reaching out to landlords affected by Common’s closure.
In 2016, Sergii and his business partner, both immigrants, founded Outpost Club to address the challenges of finding affordable housing in the US. They built a vast network of coliving spaces in New York, managing 1 million square feet, generating $25 million in annual revenue, and maintaining 40 properties with a 97% historical occupancy rate. Outpost Club continues to pursue this goal by working with landlords impacted by the latest news.
The coliving industry continues to thrive despite Common’s bankruptcy. It appeals to young professionals and recent graduates due to its affordability and sense of community. Recent data indicates that New York remains one of the least affordable cities in the US, requiring a single New Yorker to have an estimated $70,000 just to cover necessities. This is the market that Outpost Club has successfully tapped into to fill its coliving spaces.
For more information, go to their website, www.outpost-club.com.
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