Flow on the River: Adam Neumann’s Bold Move into Miami’s Waterfront Market

Adam Neumann’s residential venture Flow has become the lead developer of one of Miami’s most ambitious waterfront projects. In partnership with Israeli real estate firm Canada Global and billionaire Yakir Gabay’s Yellowstone Trust, Flow is taking control of the 6-acre development formerly known as the River District, now renamed Flow on the River.

The $525M recapitalization deal gives Flow the reins on finishing a 54-story, 632-unit luxury apartment tower that’s nearing completion. The project also includes a 17-slip marina and 39,000 square feet of commercial and entertainment space. Long-term plans allow for an additional 2.5 million square feet of mixed-use development, including 1,300 more residences, office space, hotels, and waterfront retail.

“This is an exciting step forward in reimagining the future of living,” said Flow co-founder Adam Neumann. “With Flow on the River, we continue to deliver on our mission one community at a time.”

Deal Structure and Ownership

Filings on the Tel Aviv Stock Exchange (TASE) reveal that Canada Global and Yellowstone each hold 37.8% of the new majority ownership, while Flow controls 24.4%. The partners paid $106M for a 60% stake, leaving the Chetrit family with just under 40%.

From Chetrit’s Vision to Flow’s Control

Chetrit Group, led by brothers Joseph and Meyer Chetrit, purchased the site at 275 SW Sixth St. in 2014 for $91M. In 2015, they secured approval for a $1B mixed-use mega-project, but construction didn’t begin until 2022, after securing a $310M loan from Madison Realty Capital.

By this year, Chetrit had fallen behind on loan payments, with debt reaching $372M. As part of the recapitalization, the partners refinanced the loan, made a $22M payment to the lender, and reduced debt to $350M, including mezzanine financing. The project requires $10M to finish construction and another $10M for leasing efforts.

If Flow misses performance targets, Canada Global can replace the property manager, according to TASE filings.

Chetrit’s Financial Struggles

Nationally, Chetrit controls 16 million square feet of property but has defaulted on roughly $1.6B in debt as of March, according to Crain’s New York Business. The group is also facing multiple lawsuits, including one from New York City over health and safety violations at a Times Square hotel, where lenders are pursuing foreclosure on $223M in loans.

Flow’s Expanding Footprint

Flow and Canada Global have collaborated on over 9 million square feet of projects, including a $116M Aventura office acquisition slated for three new towers, and a 2,300-unit residential development in El Portal. Flow also owns nearly 30% of Canada Global.

Founded after Neumann’s 2019 exit from WeWork, Flow now manages 1,000 rental units in Miami and Fort Lauderdale, with 466 condo units at Flow House Miami set to open later this year. Backed by Andreessen Horowitz, Flow has also expanded into Saudi Arabia, with holdings in Riyadh.

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