More than a year later, it's official: The We Company owns Lord & Taylor’s Fifth Avenue flagship.https://t.co/L9sgQDrN7Q
— The Real Deal (@trdny) February 11, 2019
According to a Real Deal report, the New York–based co-working startup WeCompany has finally closed the $850 million deal on the historic Lord & Taylor Flagship on Fifth Avenue and West 39th Street in Manhattan, which will serve as its New York headquarters. The company initially announced the news in October 2017, and was expected to finalize the transaction by August 2018. But, according to the Real Deal, “WeWork extended the deadline twice, to Jan. 31, by making payments of $50 million to the seller, [Lord & Taylor’s Canadian parent company, Hudson’s Bay Co.] HBC,” reportedly due to heavy loads of paperwork. In addition, the Canadian retail company acquired a $125 million share in the building.
“The completion of this transaction, which will see us bring new life to the iconic Lord & Taylor building, reflects the evolution of the WeCompany, the diversification of our real estate strategy, and the company’s ongoing transition from an occupier to an operator of space,” a spokesperson for WeCompany said in a statement published in the Real Deal.
According to some sources, commercial company Eastdil Secured arranged a $900 million loan from three lenders, from which nearly $600 million was secured at the time of closing. According to the Real Deal, “the remainder of the loan will fund the building’s renovation.”
Last week, permits were obtained by WeCompany chief architect Bjarke Ingels to start revamping the historic structure
