Adam Neumann Lands $155M Loan for Flow House

Adam Neumann scored a $155 million loan for his under-construction Flow House condos in downtown Miami.

Invictus Real Estate Partners and Integritas Capital, both based in New York, are providing the $155 million construction and inventory loan to Neumann’s Flow, according to a press release. The WeWork founder is planning the 40-story, 466-unit Flow House at 697 North Miami Avenue in Miami Worldcenter, a 27-acre mega development with more than 8,000 residential units, 499 hotel rooms and almost 800,000 square feet of commercial space in the pipeline.

Adam Neumann Lands $155M Loan for Flow House — Renderings of Flow House at 697 North Miami Avenue

Flow House will include furnished studios and one-bedroom and two-bedroom units, with prices starting at $450,000. The tower is short-term rental-friendly, and amenities will include a pool, fitness center, spa facilities, cafes, coworking spaces, a game room and a podcasting room, its website shows.

Sales launched in October, with OneWorld Properties leading marketing. Flow House is expected to open later this year.

Invictus, led by Eric Scheffler and Christopher Pardo; and Integritas, led by Stephen Palmese, are frequent collaborators. Earlier this month, Palmese proposed a 57-story tower in Fort Lauderdale that would have 550 apartments and a 253-key hotel.

“A lot of the local lenders shied away,” from the Flow House loan, Palmese said, crediting their concerns to less experience with inventory loans. Lenders may have other reasons for caution when it comes to financing Neumann’s projects. The billionaire was famously forced out of WeWork after the company’s failed initial public offering revealed significant losses, a crucial made-up financial metric and alleged conflicts of interest.

Flow House was initially planned as a rental tower, with the switch to condos necessitating an inventory loan, Palmese said. Neumann’s Flow, the residential real estate-focused firm he launched in 2022, was expected to focus on rental projects that foster community.

“We learned while building Flow over the last two years that the exact same needs faced by renters are also faced by owners in terms of lack of community and lack of connectivity,” Neumann told Real Tactics Pro when sales launched for Flow House last year.

Flow is backed by the Silicon Valley-based venture giant Andreessen Horowitz, and has projects and towers in Miami, Fort Lauderdale and the capital of Saudi Arabia, Riyadh. In recent years, Neumann moved to Bal Harbour and spoke at TRD’s South Florida Real Estate Forum in November. In January, he had the winning bid to buy a 16-acre El Portal development site for $70.5 million, and landed a $51 million acquisition loan for the site last month.