Adam Neumann's Flow Ventures into $300 Million Miami Development Amid WeWork Acquisition Interest

Key Takeaway

• Adam Neumann's Flow embarks on a $300 million Miami development, including apartments and offices, as part of the larger Miami Worldcenter project.
• Neumann, with investors like Third Point, eyes acquiring WeWork Inc. out of bankruptcy, signaling a potential return to the co-working space sector.
• Financing for the Miami project involves a $240 million municipal bond sale; legal documents to be updated for accuracy regarding Flow's involvement.

Miami Development Venture

Adam Neumann's real estate startup, Flow, is embarking on a $300 million development project in Miami, transforming an area once known as tent city into a vibrant mix of rental apartments, retail spaces, and small offices. This initiative is part of the larger Miami Worldcenter, a significant urban redevelopment spanning over 20 acres and involving multiple developers. Flow's involvement in this project was confirmed through a preliminary document filed on March 11 on MuniOS, an online repository for municipal offerings. The development aims to enhance Miami's downtown area by creating interconnected living and working spaces.

WeWork Acquisition Interest

In parallel to his real estate ventures, Adam Neumann, alongside investors including Dan Loeb’s Third Point, is exploring a bid to acquire WeWork Inc. out of bankruptcy. Neumann, who co-founded WeWork and led it to a peak valuation of $47 billion before his departure in 2019, has been seeking information from WeWork since December to formulate a bid. Efforts to secure a bankruptcy financing package for WeWork are underway, although specific details of the potential offer have not been disclosed. WeWork, acknowledging regular expressions of interest from outside parties, stated its focus remains on restructuring to ensure its long-term sustainability and independence.

Financial and Legal Framework

The Miami Worldcenter project is being financed in part through a municipal bond sale aiming to raise about $240 million. Flow's involvement in the project was initially misattributed to Neumann's family office, 166 2nd Financial Services, in the municipal offering document, a characterization disputed by a spokeswoman for Flow. The document is expected to be updated to accurately reflect Flow's ownership of the projects. The development's office and retail components are slated for completion by next year, with further plans for a 41-story apartment tower and additional retail and office space by 2025.

Management Quotes

• A spokeswoman for Flow:

  "Any references that anyone falsely made to Adam, Rebekah or their family office are provably incorrect."