Landlords expand into new co-living niche for entrepreneurs to immerse themselves in progressive living environments aimed to scale businesses and incubate game-changing success
Imagine a handful of highly motivated and game-changing entrepreneurs, all earning at least six or seven figures a year, living together in a large, six-bedroom luxurious space.
Next, imagine a fully stocked house, complete with a personal chef and concierge. Add on top of that regularly scheduled “mastermind” sessions and networking events designed to offer peer-driven support to help each house member break their business through to the next level.
All day, every day, it’s full throttle in this dynamic environment cultivating professional and personal growth for those lucky entrepreneurs selected to live in these co-living spaces, which are cropping up exponentially across the United States and abroad.
Most co-living start-ups aim to stay lean, avoiding the complexities of owning or developing the real estate which they occupy. Instead, they’ve partnered with more established developers and landlords, becoming de facto management companies operating on behalf of the owners of these properties.
Two firms leading these symbiotic co-living partnerships are Daniel Kalenov of Diversus Fund, a boutique private equity firm and Christine McDannell, Founder of Kindred Quarters, a leading co-living technology firm for driven and successful entrepreneurs. McDannell recently authored “The Coliving Code,” with a foreword by Sir Richard Branson.
The first Kindred Quarters house launched in November 2017 and was coined “The Entourage House.” Daniel Kalenov, Founder of Diversus Fund and RentalWithAView, a portfolio of unique vacation rental homes in San Diego, acted as the co-living property’s landlord.
“I am a big fan of co-living ventures; the concept is disruptive and makes complete sense to me,” said Kalenov, who understands the entrepreneurial mindset since his own background includes three tech startups, two medical device companies and 15 years experience investing in real estate.
“Living with other like-minded entrepreneurs is a recipe for success… After all, we can only do so much working in a vacuum. Every aspect of co-living is designed to help entrepreneurs reach their fullest potential –– freeing up time and sharing living costs to include convenient amenities like professional housekeeping, chefs and personal assistants. It’s a win-win: both for the tenants and the landlords, like me.”
One co-living tenant of Kindred Quarters, Dan Schwartz, CEO of InvestorFuse, boasted, “Immersing yourself in this kind of environment allows you to access your inner freedom.”
Co-living not only brings entrepreneurs together to share their highs and lows, but also enables them to “mastermind” to share best practices and secrets of reaching new heights in their businesses.
Each Kindred Quarters house comes with a personal chef who prepares power-charged meals ready in advance to take the burden of cooking away as well as a personal assistant available to do anything and everything each individual needs to keep their focus entirely on business. The rooms are kept fully furnished, and in the case of house owned by Diversus, there is a pool, jacuzzi, custom bar, basketball court and home theater to either relax or keep the adrenaline pumping.
“At the Diversus Fund, we raise capital for interesting, off-the- beaten path real estate projects including co-living spaces, vacation rentals, hotels, and resorts both domestically and internationally,” said Kalenov. “I was intrigued by the concept of co-living and for me, renting a property to Christine for her co-living venture made sense. As a landlord, we were able to earn a slightly higher rent than we would have with a long term tenant.”
“We made several concessions to the house to meet the visionary needs of a co-living environment,” continued Kalenov. “It is important that real estate investors in non-traditional asset classes really understand the unique needs of their clients, and are willing to modify their assets as necessary to earn those bigger rent payments.”
While co-working has long been a trend in the United States and abroad, co-living is gaining momentum and popularity amongst real estate investors and out-of-the-box thinkers. It will be interesting to see how this exciting niche shakes out as investors begin to experiment with co-living ventures over the course of the next couple years.