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Today's email is supported by SWTCH, a leader in EV charging solutions for multifamily and commercial properties across North America. They assist building owners and operators in deploying EV charging systems that optimize energy usage and revenue at scale, utilizing existing grid infrastructure.

Once a leader in the flexible living sector, Common Living has filed for Chapter 7 bankruptcy, resulting in the complete liquidation of its assets. As discussed in today's email, the company was acquired by its European rival Habyt in January 2023 after facing a lack of new investments and challenges during the pandemic, despite prior growth and partnerships with major landlords. Habyt, which recently raised $45 million, decided to shut down Common to focus on more profitable ventures and regions where co-living is better accepted.

This week in Propmodo Technology, we explore energy management. A new article highlights how New Times Square in Toronto saved $24,000 by installing 21 EV chargers with load management technology, which efficiently shares electrical capacity and avoids costly infrastructure upgrades. This setup supports up to 40 chargers, ensuring reliable EV charging for tenants without impacting the building's electrical load.

Now, let's dig in!

Flexible Living Pioneer, Common Living, Goes Bankrupt

What was once the darling of the flexible living concept, Common Living, is now going bankrupt. Last week, they filed for Chapter 7 bankruptcy which, unlike the Chapter 11 type that WeWork is emerging from, means a complete liquidation of assets and closure as a business. Common was acquired by its European rival Habyt in January 2023 and operated as a subsidiary since then. Few reasons were given for the decision by the parent company; all they had to say was, “This decision, although not what we had hoped for, will make the remainder of the Habyt group more financially agile, with greater capacity to accelerate growth and generate value.”

There haven’t been many details of the financial health of Common’s portfolio, but a quick look at what happened to the company before this announcement provides some context. Before the acquisition, Common raised its last funding round in September 2020. At the time, the goal was to help the company grow into a full-fledged multifamily owner and developer. “Over the past five years, Common has grown from a small coliving operator to one of the fastest-growing residential brands in the United States with over 17,500 units under construction,” said founder and CEO Brad Graves at the time. They had also just launched their workforce housing concept, Noah Living, which was later shut down.

After that funding round, it seems like the funding dried up due to concerns about the viability of a co-living concept during the pandemic. The lack of new investment didn’t stop Common’s growth, though. They penned deals with large landlords like Nuveen and Tishman Speyer and partnered with developers to manage their newly built residential buildings. But then, seemingly out of nowhere, the company’s co-founder and CEO, Brad Hargraves, stepped down. Brad was the face of the company and one of the most passionate advocates of the co-living model, so his departure raised questions about what was happening behind closed doors. A few months earlier, an article was published quoting residents about their “nightmare” living situations.

Habyt, the company that acquired Common, was able to secure new funding post-pandemic. They raised $45 million in October of last year and “aimed to reach profitability” in 2024. Obviously, they were not able to hit those profitability goals and had to shut down Common to help shore up their bottom line. The failure of Common might have pushed Habyt to focus on other areas where co-living is more accepted. The U.S. might not be a main focus for the company after its latest funding round either. One of its major investors, Korelya Capital, focuses on exporting European startups to Asia. Habyt might be smart to focus on where they have the most influence and wait to see if co-living makes sense for the American market.

PRESENTED BY SWTCH
Load Management: The Secret to Affordable EV Charging

Demand for EV chargers at residential and commercial properties continues to grow, but how can property owners deliver when the cost to upgrade your electrical system is so high?

The solution is load management technology.

Read this guide to learn:

• What EV charging load management is and how it works

• Different setups for load management at your properties

• How intelligent software puts the benefits of this technology in your hands without requiring any technical expertise on your part

As EV chargers become a must-have, this guide offers the solution you need to meet tenant demand without breaking the bank.

Insider Insights

🔄 Turnabout: WeWork’s massive 240,000 square foot headquarters will soon be operated by its rival Industrious.

⚡️ Over-charged: Rising insurance costs are threatening the viability of affordable housing around the country.

Propmodo Live Webinar

Propmodo Technology: Energy Management

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