Daily Beat Review Cult We focuses on the rapid adoption of Adam Neumann into the high-end world of commercial real estate. We also share some of the authors’ unusual tales of arrogance – even in relation to Neumann himself.
Timeline: how Adam Neumann burst into the real estate world
Adam Neumann’s first space was in Josh and Jack Guttman 155 Water Street in Dumbo. Ironically, the 2008 deal was a joint partnership in which they split the profits, which is the same business model that many in the coworking sector are now using.
- Neumann and his co-founder Miguel McKelvey then decided that they wanted to rent the space directly from the landlords and sublet it, but couldn’t find a landlord to hand the building over to two children with an untested concept. They eventually convinced Abraham Talassazan let them experiment on his hectic 154 Grand Street in Nolith.
- He was in his late thirties at the time, real estate investor Joel Schreiber met Neumann by chance while visiting a building in the Bronx. During the day of the meeting, Schreiber agreed to invest $ 15 million at an estimate of $ 45 million.
- In 2012, David Zar was looking for a tenant to fill 349 Fifth next to the Empire State Building. This became WeWork’s second office and the lease was guaranteed by Schrieber.
- Real estate investor Mark Schimmel, Madonna’s ex-boyfriend who met Neumann at the Kabbalah Center, was the next to invest in a startup.
- By the end of 2012, Neumann was already friends with Boston Properties. Mort Zuckerman and began to take the plane. He has successfully won the favor of the industry elite, including the CEOs of Forest City Ratner and Rudin Management.
- CEO Regus Mark Dixon asked someone from his company to rent a WeWork space. Dixon and his team concluded that WeWork had an identical business model.
Since its inception, the companies controlled by Neumann have received more than $ 2.1 billion from the company. Here are some anecdotes that reflect the ultimate fallacy:
- When meeting with the Crown Prince of Saudi Arabia, Neumann said: “You, I and Jared Kushner we’re going to remake the region. ” After the assassination of Saudi Arabian government critic Jamal Khashoggi, Neumann said Prince Mohammed needed more effective leadership. Who could give such advice? Without hesitation, Neumann replied, “I am.”
- Neumann believed Middle East Peace Treaty will one day be signed at the WeWork office.
- When advisers suggested that he hire a more experienced leader to advise him on Mark Zuckerberg After he attracted Sherrill Sandberg, Neumann replied, “Me and Mark and Sherrill. He was not.
- In 2018, Neumann told executives that he believed WeWork would become a $ 3 trillion company. To achieve this goal, he founded an in-house real estate firm (ARK) and contemplated buying Cushman & Wakefield and CBRE to dominate the service industry. SoftBank’s Masa believed that Neumann was not “crazy enough” that the Unicorn would be worth $ 10 trillion by 2028.
Cult Us: WeWork, Adam Neumann and the Great Startup Fallacy from Wall Street Journal reporters Eliot Brown and Maureen Farrell, available July 20, 2021 by Crown, owned by Random House, a division of Penguin Random House LLC.