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What is Yardi’s Relationship With WeWork?

What is Yardi’s Relationship With WeWork?

Defining the future of real estate

Franco Faraudo
April 19, 2024

Propmodo Daily

By Franco Faraudo · Apr. 19, 2024

Greetings!

WeWork is facing another buyout attempt from its ousted founder, Adam Neumann. His new company, Flow, is reportedly offering to beat any other bidder's price by ten percent. This news gets even more interesting when you learn that Yardi, a major player in commercial real estate software, is one of Flow's investors. Today's email takes a look at WeWork's complicated relationship with this software giant.

Mental health has become a major issue in the U.S. in recent years, exacerbated by the pandemic. To support employee well-being and productivity in the workplace, offices like Amazon and Gogo are adding prayer and meditation rooms. Our new article explores the growing trend of creating these kinds of prayer, meditation, and relaxation spaces in the workplace.

Like data? Join our Propmodo Live webinar on May 7th with Caroline Wu from Placer.ai as we explore how some cities thrive despite low office occupancy. Discover the effects on different property types and innovative downtown revival strategies. Register for "Which Cities Are Still Thriving Even With Low Office Occupancy?"

This week in Propmodo Technology, we're tackling multifamily development. Learn how sustainable trends like passive house and 3D printing are changing construction. Discover AI's impact on development finance, and explore the viability of franchise models within modular housing.

Now, let's dig in!

What Is Yardi’s Relationship With Wework?

News broke yesterday that WeWork, which is still in the midst of its bankruptcy proceedings, had received another offer from its founder, Adam Neumann, to buy the company. Neumann has already made several public bids for his new company, Flow, to buy WeWork, but this time around, the offer came with an open-ended provision. Flow and its backers have said that they are prepared to beat any other acquisition offer that WeWork receives by ten percent.

As juicy as that news is, the report had another important tidbit: Yardi is an investor. Yardi partnered with WeWork back in 2022 and was seen as a possible investor when the company started to hit a liquidity crunch at the beginning of 2023. However, as far as I could find, there is no public information about Yardi actually investing in WeWork.

One of the reasons for this investment to go under the radar was that Yardi invested in the company through another entity called Cupar Grimmond LLC. The reason why Yardi would invest behind a shell company like this is unknown, but when you look back on WeWork's journey through its bankruptcy, you do find previous mentions of Cupar Grimmond.

One of the first things that WeWork did to help it reduce its stifling debt obligations was to offer its debtors equity in the company. Most of WeWork's lenders took this deal. The two that refused the offer were SoftBank and "Cupar Grimmond."

It was unclear why Yardi partnered with WeWork in the first place. The press release said that the two companies would be working together to create "the next generation of work management software." WeWork does still have a workplace management solution, presumably powered at least in part by Yardi software. But, Yardi has its own workplace management/co-working software called Yardi Kube, which has been available since 2019.

Yardi has been named as one of the companies that could help WeWork out of its dire situation with a fresh round of investment. But after learning about the nature of their relationship and Yardi's clandestine way of investing in WeWork, I am not so sure that they would be willing to put up more money. Flow obviously has put up the best offer for the company, but they come with all of the baggage that seems to follow Neumann everywhere he goes.

If Yardi does step in to fund WeWork, it might end up looking more like an acquisition than the lifeline that the company's remaining executives are hoping for. Yardi's decision to mask its investment in WeWork raises red flags; as Andre the Giant's character Fezzik said in the iconic movie The Princess Bride, "A man in a mask can never be trusted."

Workplace

A Focus on Mental Health in the Office Has Led to More Prayer and Meditation Rooms

In response to the growing need for employee well-being and mental health, many offices have started incorporating prayer and meditation rooms. Studies have shown that work environments can have a negative impact on workers' mental health, leading to an increase in the design of these spaces. These rooms are designed with features like non-denominational prayer rooms and ablution stations. Some companies like Amazon and Gogo have already implemented such facilities. Providing employees with access to these spaces is a proactive step towards ensuring a healthier and more productive workplace.

READ ONLINE: https://propmodo.com/a-focus-on-mental-health-in-the-office-has-led-to-more-prayer-and-meditation-rooms/

Insider Insights

🖥️ Job search: Google has announced another round of layoffs, and this time they have gutted their real estate division, a bad sign for their future office plans.

🚨 Officially bad: According to new data office foreclosures are up 117 percent since last March.

Overheard

Over the last year, more than $51B has been spent on manufacturing construction in the Greater Texas area, with $40B spent in the Mountain West, another $40B spent in the Great Lakes, and $29B spent in the Southeast
— Joey Politano 🏳️‍🌈 (@JosephPolitano)
12:32 PM • Apr 18, 2024

Propmodo Technology: Multifamily Development

AI Automation is Coming to Housing Development Finance

AI and automation are rapidly transforming the multifamily real estate industry. Developers and operators are using AI-driven technology to streamline leasing processes, optimize rent pricing, and enhance tenant interaction, resulting in cost savings and improved efficiency. This revolution is also extending into development and finance, where AI simplifies site selection, automates feasibility analysis, and assists in creating offering memos. Early adopters who embrace these technologies will gain a significant competitive edge in the rapidly evolving world of multifamily housing.

READ ONLINE: https://propmodo.com/ai-automation-is-coming-to-housing-development-finance/

Can a Franchise Model Address the Challenges of Modular Construction?

READ ONLINE: https://propmodo.com/can-a-franchise-model-address-the-challenges-of-modular-construction/

Cutting Edge Construction Trends for Sustainable Homes

READ ONLINE: https://propmodo.com/cutting-edge-construction-trends-for-sustainable-homes/

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Propmodo Daily is written and edited by Franco Faraudo with contributions from readers like you and the Propmodo team.

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