Amazon is acquiring the former Lord & Taylor flagship at 424 Fifth Avenue from WeWork for $1.15 billion, NYPost first reported. The 11-story building spans 660,000 SF, and will serve as the e-commerce giant’s NYC headquarters.
- Dig Deeper: The deal consists of Amazon paying off $750 million in construction loans taken out for WeWork’s lavish renovation of 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 asset in exchange for getting out of the prohibitive lease it signed for its own building.
- Worth Noting: WeWork is currently undertaking a gut renovation of the 10-story, 106-year-old building. The property will house around 4,000 employees when the building is ready in around 18 months.
- Heard on the Street: “Jeff Bezos toured three properties in Manhattan at Hudson Yards, the Farley and the Lord & Taylor property, and he chose Fifth Avenue.”