Starcity

Starcity was a San Francisco-based co-living company founded in 2016 that operated communities of furnished private bedrooms paired with shared kitchens, living rooms and other common areas. Units in its portfolio ranged from roughly 130 to 220 square feet and came furnished with a bed and mattress, nightstand, lamp and rug; residents shared communal kitchens and took part in organized meals, cultural events and outings. Leases used flexible terms and a single monthly payment covering residential utilities, shared supplies and services such as home cleaning, with optional add-ons including laundry and dog walking.

The company pursued two lines of business simultaneously: converting underutilized or abandoned multi-family, hotel and office buildings into co-living properties, and ground-up development of mid- and high-rise "vertical neighborhoods." In October 2018 it announced two Bay Area ground-up projects — Minna, a 270-unit building at 475 Minna Street in San Francisco's SoMa area with 50% affordable housing and using SB 35 streamlining, and Bassett, a 750-790 unit building at 199 Bassett in downtown San Jose near Caltrain's Diridon Station, with rents targeted at 80% of area median income. Both were slated to open in 2021. Starcity said its model added roughly three times as many housing units to the market as traditional apartment rentals without displacing existing residents, and it worked with local community stakeholders and nonprofits in the neighborhoods where it operated.

By 2021 Starcity operated about 1,000 units — roughly a dozen properties in the Bay Area, seven in Los Angeles, three in Barcelona and one in New York — with more than 6,000 units in its pipeline. In June 2021 Common agreed to take over Starcity's management contracts and portfolio, excluding its land and development assets, and to wind down the Starcity brand.

Founding story

Starcity was founded in 2016 by CEO Jon Dishotsky, Chief Product Officer Mo Sakrani, CTO Josh Lehman and COO Jesse Suarez, and took part in Y Combinator's Summer 2016 batch. The founders stated their aim was to make moving to cities easier and more affordable.

Business model

Starcity operated co-living residences primarily through management agreements with multi-family landlords, alongside a smaller number of master leases and some directly owned real estate and development agreements. It also acted as a developer, converting existing buildings and pursuing ground-up co-living projects, and supported operations with its own software products for group living.

Residents paid a single monthly payment covering rent, residential utilities, shared supplies and shared services such as home cleaning, with optional paid add-on services including laundry and dog walking. Bay Area rents ranged from $1,325 to $2,500 per month.

Traction

Starcity operated approximately 1,000 units across California, New York and Barcelona at the time of its acquisition, with more than 6,000 additional units in its development pipeline. It employed 35 people as of October 2018. Common stated that Starcity's existing portfolio had a high occupancy rate.

Latest developments

In June 2021 Common announced it would acquire Starcity's management contracts and portfolio — adding about 1,000 operating units and roughly 7,000 pipeline units to Common — while excluding land and development assets, which Starcity planned to liquidate. Starcity's Barcelona properties and a Madrid project under construction were set to become Common's first European locations. Completion was subject to consents from Starcity's creditors, shareholders and real estate partners. CEO Jon Dishotsky said he would join Common's management team, and many Starcity employees were expected to transfer.