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WeWork — the landlord?

Co-working company buys D.C. office building for $136.5 million

1333 New Hampshire Avenue NW building in Dupont Circle
(Credit: The Merdian Group)

WeWork Property Advisors (WeWork + Rhone Group) and The Meridian Group have acquired a 350,000 SF office building in Washington D.C. from Boston Properties for $136.5 million. The WeWork fund provided 50 percent of the equity for the deal, and the co-working company will occupy 100,000 SF of space, according to WTOP

Double Dipping: This fund buys buildings where WeWork will be the tenant. Some investors were concerned for potential conflicts of interest as the co-working company is on both sides of the deal.

The Dubious Pitch… With its role as both a tenant and landlord, the fund could yield better investment returns than conventional real estate funds. In other words, there’s always a tenant in the back pocket (WeWork) who has demonstrated excellence in utilizing space.

Be Smart: Earlier this week, WeWork hired Colliers International to lease out its 220,000 SF of co-working space at the Dock 72 office building in the Brooklyn Navy Yard. This clearly runs counter to their pitch.  

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