Adam Neumann, the former CEO of WeWork, is facing a crisis with his real estate startup, Flow, as one of its properties in Nashville is experiencing financial difficulties.

What Happened: A 358-unit apartment complex in Nashville, one of six properties invested in by Flow, is struggling financially, reported Business Insider. The property has faced significant financial challenges, with millions of dollars in capital calls. This has put the equity investors at risk of losing their investments.

Flow, which was launched in 2022 with a $350 million check from venture firm Andreessen Horowitz, is now facing the consequences of the struggling Nashville property. The property, marketed as a "beacon of luxury living in the heart of downtown Nashville," has lost over $7 million between 2022 and 2023.

Flow is a minority equity owner of the building, with the majority stake held by the crowdfunding platform Yieldstreet. YieldStreet, announced that the owners are negotiating with the building's lender to salvage the deal. The options under discussion include a sale, recapitalization of the property, or debt restructuring.

A Flow spokesperson clarified that the Miami-based startup has never managed the 2010 West End property and is only a minority equity owner.

"The building's purchase predates the existence of Flow and Flow's business plans have never included the management of it," the Flow spokesperson said in a statement. "Flow is a minority, non-controlling shareholder, and the building remains current on its obligations."

Why It Matters: The financial troubles at Flow come in the wake of Adam Neumann's previous high-profile failures. Neumann, who co-founded WeWork Inc., faced significant backlash after the company's valuation plummeted from $47 billion to near bankruptcy. In April, Neumann proposed a $600 million bid to regain control of WeWork, which has been struggling to secure funding and avoid a sale amid bankruptcy proceedings.

In February, Neumann aimed to buy WeWork out of Chapter 11 with backing from Dan Loeb's Third Point. Despite these efforts, a federal bankruptcy court handed control of WeWork to its creditors in June, with Anant Yardi taking a majority equity stake.

Neumann's new venture, Flow, was launched with the intention of redefining luxury living, offering upscale amenities such as wellness centers, fitness facilities, and coworking spaces.

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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote