News of some forced consolidation in New York’s co-living rental market.
Bedly, an early player in New York’s co-living market, had been in operation since 2015 and had raised US$7 million in capital. This week, the company announced that it would cease operations and cede control of its units back to their primary landlords. Some of its lease agreements will transition over to Outpost Club, another co-living operator with properties throughout Brooklyn.
Bedly has, over the course of five years, grown its community to roughly 600 renters housed in about 200 buildings in Bushwick, Bed-Stuy, Crown Heights, and Harlem, and Jersey City and Boston. The company takes long-term leases on apartments and then turns them around at a premium to subtenants that benefit from more flexible lease agreements and the conveniences of all-inclusive living.
The tenants were surprised of the news but it sounds like things are under control:
"We're diligently working on a plan to make this transition go as smoothly as possible, with minimal impact on the members," said Outpost CEO Sergii Starostin. "We're looking forward to welcoming Bedly members into the Outpost community, and to providing them with the high level of service our members have come to expect from us." In a press release.
Outpost Club operates eleven properties in Brooklyn. It is unclear how many Bedly units it will absorb but the brand could easily double its footprint with the deal.
The company positions itself as a co-living consultancy that welcomes entering into long-term management agreements that guarantee optimal revenue for landlords.
From the website: “Over the past few years, we have gained a lot of experience in the performance of different residential properties, the redevelopment of residential properties and in competitive leasing. We are capable of consulting on how to enhance the performance of future and existing residential properties through co-living strategy. We help our partners to optimize floorplan efficiency and the experience of future tenants, thus generating more revenue for the owner.”