Commercial real estate developer Daydream Apartments has an interesting take on homesharing, offering it to tenants as a managed incentive. To help realize their vision, the company has bought multiple apartment buildings in Los Angeles and Denver, among other locations.
Daydream teamed up with Iconiq Capital, a wealth management fund that represent Facebook CEO Mark Zuckerberg and Twitter CEO Jack Dorsey, to purchase two multifamily buildings in Los Angeles, totaling 575 units, for $406 million, as reported by LoopNet.
The buildings will be managed by the company, who will facilitate short term rental accommodations to existing tenants, making them part of their umbrella of STR-friendly apartment properties.
Daydream has begun to make a real play for the homeshare space, gobbling up buildings in Denver and Seattle to that end, in addition to the two downtown Los Angeles properties.
“Daydream owns and manages Class A apartment properties and facilitates homesharing for residents,” their official business statement reads. “The Denver-based firm was founded in 2018 to create a new type of urban residential community, one with real opportunities for residents to lower their housing expenses with managed homesharing.”
The company manages the rental and everything that goes with it, including booking, key exchanges and cleaning. The option for short term renting is only available for residents of the building, so vacant units are not used for this program.
The goal, according to Daydream, is to help make their apartments more affordable by offering managed homesharing. This is not too dissimilar to the mission statement behind app Leavy.co, whose goal is to make vacations more affordable with similar homeshare management, as we previously reported.
In other words, this could be the beginning of a new trend that uses homesharing to offset the costs of daily living.
Daydream and Iconiq must certainly believe in this business model, as they paid a premium price for their Los Angeles properties. They were acquired for around $706,087 per unit, a price that is much higher than the average market price for multifamily units in downtown Los Angeles, which is $500,000, according to CoStar data.