The affordability crisis in housing has been exacerbated by new construction supply constraints due to local zoning restrictions and an aging housing stock. Part of the solution for these growing cities is to allow for purpose-built coliving assets that provide more affordable housing catered to the majority of the workforce in these urban areas. The coliving asset class has grown from less than 500 beds in 2015 to more than 3,300 institutional-grade beds in 2018. The 2019 pipeline shows 16,000-total beds being delivered in Gateway and secondary cities across the U.S., including but not limited to New York City, Washington DC, Chicago, Miami, Denver, Los Angeles, San Francisco, Seattle and Boston. Six Peak Capital is one of the leading asset managers focusing on this market segment with over 2,000 beds built or under our development pipeline. Six Peak Capital understands the demand drivers for coliving, the nuances in building purpose-built coliving assets and the required returns to attract institutional capital. With returns 10-30% higher than traditional multifamily assets, Six Peak has delivered value and market leading risk-adjusted returns for its investors.
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