Co-living firm Common Living files for liquidation bankruptcy
215 East 124th Street (Credit - Cyclomedia)
The New York-based co-living firm Common Living, Inc., filed for bankruptcy in Delaware on Friday, under chapter 7, which manages a process for the company to liquidate. The company is essentially a multifamily real estate management firm not a property owner, and filed a petition for itself and seven other related entities. All showed the same information indicating a company in financial distress, stating assets between $1 million and $10 million but liabilities between $10 million and $50 million. The filings had few details and did not identify any of the assets or liabilities.
This filing does not appear to have any impact on Habyt, the company that acquired Common Living a little more than a year ago.
Luca Bovone, the founder and CEO of the German-based co-living firm Habyt, which in October 2023 announced it raised about $42 million in another funding round, signed as manager for the entities. Habyt merged with and took control of Common Living, the firms announced in January 2023.
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The Common Living business model depended on managing properties, and was not focused on purchasing them, instead looking to an “asset-light” structure, as it said in a September 2020 press release disclosing a $50 million series D funding round from Kinnevik.
At the 2023 time of the merger announcement, Common Living said it had received $110 million in venture capital investment, and was the largest co-living operator in the United States. The website today lists 17 U.S. cities including New York, Los Angeles, San Francisco, Houston as well as smaller cities such as Birmingham, Alabama. The website also shows a presence in Ottawa, Canada.
In New York, the Common website shows six properties in Manhattan including 215 East 124th Street in Harlem, and 12 in Brooklyn.
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