
Amazon Paying $1B-Plus for Former Lord & Taylor Building
Amazon will acquire the former Lord & Taylor flagship building in Midtown for $1.15 billion in cash, the New York Post reported. The 660,000-square-foot landmark property at 424 Fifth Ave. will serve as Amazon’s New York headquarters.
A consortium led by WeWork paid $850 million for 424 Fifth in late 2017. The plan then was to move WeWork’s headquarters to 424 Fifth, and the coworking giant began extensive renovations. Those plans were derailed by WeWork’s unsuccessful attempt to go public.
The Post reported that the lion’s share of the deal consists of Amazon paying off $750 million in construction loans taken out for renovating the space. The remainder consists of more than $350 million in equity for the building’s current owners.
WeWork has waived any economic interest in the building in exchange for getting out of its lease, and co-founder Adam Neumann won’t make any money on the deal.
For comments, questions or concerns, please contact Paul Bubny
- ◦Sale/Acquisition