Outpost Club Poised to Lead Coliving Market After Common’s Bankruptcy
By Space Coast Daily // June 6, 2024
In a surprising turn of events, Common, a prominent coliving property management company with operations across the United States and Canada, declared bankruptcy this past week.
This development leaves the fate of 17,500 units that Common managed or planned to manage uncertain. However, Outpost Club, a rising competitor, has already secured seven deals with landlords previously associated with Common.
Outpost aims to take over 50% of Common’s portfolio in the wake of this news.
Now recognized as New York’s leading coliving and real estate management group, was established to make apartments easier to find and more affordable. The company continues to pursue this mission by reaching out to landlords affected by Common’s closure.
This is not the first time Outpost has pursued growth in this way. In the past, they assumed management of Bedly’s properties in Manhattan and New Jersey, as well as properties from other failed coliving operators like Stoop and the Quarters brand.
This is not even the first time Outpost has assumed management from Common; when landlords were dissatisfied with Common’s performance prior to bankruptcy, Outpost has stepped in to fill the void. They have accumulated about 500 beds from competitors in total.
Outpost Club attributes Common’s failure to its aggressive growth strategy, which was heavily reliant on multiple rounds of investment raises totalling $110 million.
In contrast, Outpost has pursued sustainable growth without external money, focusing on sound business fundamentals. Unlike Common, which outsourced many operational aspects, Outpost maintains in-house control over technology, onsite teams, and customer service, leading to greater efficiency and cost management.
“We have found a way to do what Common could not, as well as how to refinance the properties,” says Sergii Starostin, Outpost’s founder and CEO.
Despite Common’s bankruptcy, the coliving industry remains robust, with young professionals and recent graduates favoring coliving arrangements for their affordability and community aspects. Outpost Club continues to thrive, with a vast network of coliving spaces in New York and impressive occupancy rates. For more information, go to their website, www.outpost-club.com
