If you came to this article directly, consider going through the series of articles it is a part of. Please find the link to the other articles in the Coliving fundraising and investment series here:
- The Rise of Coliving Investments
- What Makes Coliving a Profitable Investment?
- Types of Coliving Business Models Investors Should Know
- Securing Capital: Fundraising Strategies for Coliving Businesses
- Key Factors to Consider Before Investing in Coliving Space
- How Legal and Regulatory Aspects Can Impact Coliving Investment
- Case Studies: Successful Coliving Ventures and What Investors Can Learn
- Opportunities and Risks: Is Coliving a Safe Investment?
- How to Get Started with Coliving Investment Today
- Why Coliving Investment is the Future of Real Estate
- Ready to Invest? Start Your Coliving Journey with Us
Learning from real-world examples of successful coliving ventures offers valuable insights into what works and what doesn’t. These case studies highlight different business models, strategies, and operational practices that helped these companies thrive in a competitive market. Below, we explore four successful coliving ventures and distill key lessons for investors and operators.
“Every successful coliving venture tells the same story—profit follows purpose. When operators focus on community and impact, the returns follow naturally.”
Cohabs: Scaling Through Private Equity and Global Expansion
Overview:
- Founded: 2016
- Headquarters: Brussels, Belgium
- Funding: Raised $450 million from investors including Ivanhoé Cambridge, Belfius Insurance, and the Belgian Sovereign Fund (SFPIM).
Strategy:
Cohabs specializes in long-term coliving spaces designed for young professionals. The company leverages an asset-light model, working with landlords and property owners to expand quickly without heavy upfront investments. With operations in Belgium, France, and New York, Cohabs focuses on sustainable development and community-driven housing.
What Investors Can Learn:
- Asset-Light Models Enable Faster Expansion: Cohabs’ use of leased properties allowed it to scale quickly and enter multiple markets.
- Private Equity Drives Growth: Strategic partnerships with private equity firms provided the capital needed for international expansion.
- Sustainability and ESG Alignment: Cohabs integrates sustainable practices into its operations, making it attractive to socially conscious investors.
Key Takeaway:
Partnering with private equity firms and adopting an asset-light model can help coliving operators grow sustainably while minimizing capital requirements.
The Social Hub: Impact Investing and Mixed-Use Developments
Overview:
- Founded: 2012 (formerly The Student Hotel)
- Headquarters: Amsterdam, Netherlands
- Funding: Secured €145 million in impact financing from UniCredit for expansions in Rome and Florence.
Strategy:
The Social Hub operates a hybrid model combining student housing, coliving spaces, coworking areas, and event venues. It appeals to students, young professionals, and remote workers by offering flexible lease options and access to vibrant community spaces. The Social Hub focuses on impact investing, aligning its projects with social and environmental goals.
What Investors Can Learn:
- Mixed-Use Developments Generate Diverse Income Streams: Integrating coworking spaces, retail units, and event venues creates additional revenue sources.
- Impact Investing Appeals to Modern Investors: By aligning with ESG principles, The Social Hub attracts impact-focused investors.
- Flexible Lease Options Meet Tenant Needs: Offering short-term and long-term stays broadens the target market, from students to remote workers.
Key Takeaway:
Investors should explore mixed-use developments to diversify income streams and consider impact investing to attract capital aligned with social value creation.
Flow: High-Profile Venture Capital Backing
Overview:
- Founded: 2022
- Headquarters: United States
- Funding: Received $350 million in venture capital from a16z (Andreessen Horowitz).
Strategy:
Founded by Adam Neumann (co-founder of WeWork), Flow focuses on urban coliving developments that blend flexible living arrangements with community engagement. With over 3,000 apartments already acquired, Flow targets major U.S. cities, aiming to reshape the rental market by offering flexible, fully serviced living spaces.
What Investors Can Learn:
- Strong Leadership and Vision Attract Capital: Neumann’s reputation and vision for the rental market attracted high-profile venture capital.
- Urban Markets Offer High Demand for Coliving: Flow’s focus on major metropolitan areas highlights the strong demand for flexible housing options in urban centers.
- Brand Differentiation Matters: Flow positions itself as a lifestyle brand, emphasizing community building and tenant experiences.
Key Takeaway:
Investors should focus on urban markets with high rental demand and ensure their brand offers unique tenant experiences to differentiate from competitors.
Colonies: Strategic Expansion with Institutional Support
Overview:
- Founded: 2017
- Headquarters: Paris, France
- Funding: Secured €1 billion from Ares Management to expand operations.
Strategy:
Colonies focuses on offering affordable, community-driven housing solutions for young professionals and students. With a build-to-rent model, Colonies partner with developers to design properties specifically for coliving. The company’s growth strategy focuses on scaling within France and across Europe, targeting cities with high demand for flexible housing.
What Investors Can Learn:
- Institutional Investment Supports Large-Scale Expansion: Collaborating with institutional investors like Ares Management provides access to long-term capital for strategic growth.
- Targeting High-Demand Markets Ensures Occupancy: Colonies focus on cities with housing shortages, ensuring high occupancy and steady revenue streams.
- Build-to-Rent Models Align with Developer Goals: Partnering with developers allows operators to optimize building designs for coliving tenants.
Key Takeaway:
Institutional investment and developer partnerships are critical for scaling coliving operations while maintaining occupancy and profitability.
Key Lessons for Investors from Successful Coliving Ventures
These case studies demonstrate that strategic partnerships, diversified business models, and alignment with tenant needs are critical for the success of coliving ventures. Here are some key takeaways for investors:
- Asset-Light Models Enable Rapid Growth: Leasing properties allows operators to scale quickly with minimal upfront investment.
- Mixed-Use Developments Drive Revenue Diversification: Combining coliving with coworking spaces, retail units, and event venues offers multiple income streams.
- Impact Investing Attracts Modern Capital: Aligning with ESG principles not only contributes to social value but also attracts impact-focused investors.
- Urban Markets Offer High Potential: High-demand metropolitan areas provide consistent tenant interest and rental income.
- Institutional Investors Provide Long-Term Capital: Collaborating with private equity firms and institutional investors ensures financial stability and sustainable growth.By adopting the right business models and forming strategic partnerships, investors can maximize profitability while building resilient, community-oriented coliving spaces. These successful ventures offer a roadmap for how to invest in coliving and create sustainable businesses that thrive in today’s evolving real estate landscape.