By the end of the year, the company plans to open 1,125 units in L.A. Last year, the group raised $50 million in Series D venture capital funding for its multifamily platform expansion globally.
Common’s senior managing director of real estate, Amalia Paliobeis, said Los Angeles presented a good opportunity for the company because it’s a city where it’s difficult to find quality rentals with reliable landlords.
“Being able to give our real estate partners high (net operating income) while simultaneously creating cheaper rent for residents is a win-win for us,” Paliobeis said in a statement. “We’re so lucky to have partners that share our vision for innovation and are committed to providing better housing options throughout Los Angeles.”
Common manages properties for institutional owners, and a large percentage of its portfolio is comprised of coliving units, which are priced from $1,077 in Los Angeles. Median rent for the average studio apartment in downtown, meanwhile, is closer to $1,900 a month, according to Zumper Inc.
Coliving units also come furnished and include utilities. They are often smaller than other units with larger shared common spaces. This design means more people can be in a building with cheaper rents while the owner still makes a profit.
The first properties in Common’s expansion are 5800 Harold by Common in Hollywood, Common Beverly in Hancock Park and Common Paramount in Hollywood.
5800 Harold, comprised mainly of traditional units, is a partnership with owner Tanner & White Properties Inc. Common is replacing the company’s previous manager.
Common Beverly will open under a partnership with real estate group Category Co., and Common Paramount will be managed by Common in its partnership with real estate company Wiseman Residential.
Common entered L.A. in 2019. Its first property was a coliving complex dubbed Common Melrose via a partnership with Category Co.
This past year, Common opened the 260-unit Stella by Common in Marina del Rey. The company also manages the 141-bed Common Elmwood in Larchmont, which it leased in under six months amid the Covid-19 pandemic, according to the company.
Common Sets Big Goals for LA Expansion