Whether it’s because they’re attracted to communal, dormitory-style living or because that’s all they can afford these days, Millennials and other younger generations are increasingly turning to co-living as a housing option.
In a co-living development, residents often have a smaller space of their own (their bedroom, for example), while sharing other spaces (like kitchens and bathrooms) with others. Co-living providers often also take care of cleaning services and social programming for their residents.
And now, one of Europe’s largest co-living developers is planning to make a big push in the U.S.
Quarters, which recently dipped its toe in the U.S. real estate market with co-living developments in New York City and Chicago, announced this week that it raised $300 million to fund a “major” expansion in the U.S.
Under the deal, Quarters’ parent company Medici Living Group and Ralph Winter’s family office W5 Group jointly agreed to invest $300 million over the next three years, with the money going towards developing 1,300 new co-living units in the U.S.
According to Quarters, Winter is one of the largest investors in micro living and student housing in Europe
“This new round of investment cements Quarters as one of the top players in the U.S. co-living space,” said Gunther Schmidt, founder and CEO of Medici Living Group. “With more than $1.4 billion for our European and U.S. expansions, we are well on our way to becoming the WeWork of co-living in 2019.”
According to the companies, the expansion is a “prelude” to further investment in the U.S. real estate market.
“The concept of co-living is perfectly tailored to the needs and desires of Millennials, the most important demographic group over the next decade, so we anticipate rapid growth in the coming years,” Winters said. “Now is the best time to secure a strong position within the co-living market and greatly benefit from economies of scale.”
Quarters said that it is targeting the cities of New York, Washington D.C., San Francisco, Los Angeles, Chicago, Boston, Philadelphia, Denver, Austin, Seattle, and Miami for its U.S. expansion.
According to the company, the new Quarters locations will be a “combination of retrofits and new constructions in metropolitan areas with populations greater than 1 million and a sophisticated tech presence.”
The company said that its “high-quality facilities” target “young professionals” and provide a residential and living experience “aligned with the needs of Millennials.”
The company’s current Chicago development features 75 “modern” apartments with 175 “quarters.” Apartments in the building are offered either as a studio or as 1-5 bedroom option with a communal kitchen and bathrooms. The building also includes a “common kitchen, lounge, outdoor grills, outdoor fireplace, outdoor lounge, skyline bar seating, chaise and cabana loungers and a recreation lounge.”
And soon, the company will bring similar developments to some new locations.