(Bloomberg) — Adam Neumann is remaking himself as a residential kingpin, purchasing stakes in thousands of apartments across the U.S.
He sees his role as landlord as part of a larger business strategy that’s yet to be revealed, said a person familiar with his holdings. Since Neumann was ousted from WeWork Inc. in 2019, he has amassed dozens of investments in startups and laid roots for new ventures of his own, said the person, who asked not to be identified because the plans are unfinished.
The billionaire and entities tied to him have purchased stakes in more than 4,000 apartments valued in excess of $1 billion, the person said. Many of the units are located in southern U.S. cities including Atlanta and Miami.
A spokesman for Neumann declined to comment. The real estate investments were reported earlier Tuesday by the Wall Street Journal.
“Since the spring of 2020, we have been excited about multifamily apartment living in vibrant cities where a new generation of young people increasingly are choosing to live,” DJ Mauch, a partner at Neumann’s family office, told the Journal. “We’re excited to play a role in that future.”
Neumann sought to redesign the modern workplace with WeWork, an office space rental company he started. It eventually became known as much for its free-flowing booze as for its fleeting $47 billion valuation.
At WeWork, Neumann explored an interest in residential spaces with a business called WeLive. The company opened a small number of communal apartments, sort of like college dorms for adults. WeLive didn’t go very far and was shuttered after the company hit turbulence.
The co-working startup nearly ran out of cash in 2019 after its initial public offering went sideways. The IPO prospectus showed mounting losses and myriad conflicts of interest, including real estate transactions between Neumann and the company that drew fire from prospective investors.
WeWork finally went public late last year at a reduced valuation of $9 billion. It has since fallen to $6.6 billion. Neumann retains a sizable stake and has a net worth of $2.2 billion, according to the Bloomberg Billionaires Index.
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