Startup Flock Homes leases headquarters in LoHi

A Denver startup is attracting new investors, including Silicon Valley VCs and mom-and-pop landlords, as it secures a new headquarters. Flock Homes, which operates a REIT-styled fund to purchase homes, recently closed a $22 million funding round, bringing its total funding to nearly $50 million since its inception in 2020. The company, backed by Andreessen Horowitz, also raised $26 million in 2022.

Founder Ari Rubin revealed plans to diversify the company’s real estate portfolio, starting with the acquisition of a new office space at 2930 Umatilla St. in LoHi. The one-year lease signals Flock’s growth trajectory, with Rubin aiming to expand the current 12-person team to over 20 employees in the near future.

With a portfolio of 850 single-family homes valued at nearly $200 million, Flock is now looking to incorporate multifamily units into its fund. Rubin highlighted that the company’s target market consists of homeowners seeking an exit strategy without incurring substantial tax liabilities.

By offering homeowners shares in the fund in exchange for their properties, Flock enables them to avoid capital gains taxes and other fees associated with traditional sales. The company manages and rents out the properties, distributing quarterly dividends to shareholders.

Rubin emphasized Flock’s commitment to providing low-risk investment opportunities and peace of mind to its clients. By diversifying into multifamily assets, the company aims to further reduce risk and increase asset exposure for fund shareholders.

Despite being based in Palo Alto, Rubin expressed a desire to return to Denver once his wife completes her medical residency. Looking ahead, he envisions Flock expanding its portfolio to include various real estate assets beyond residential properties.

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