Adam Neumann and Jeffrey Dagowitz have secured a $75 million loan from G4 Capital Partners for its development site at 123 West 23rd Street. The bridge loan refinances $65 million in debt that was provided in November 2017, according to the Commercial Observer.
- The history: Dagowitz assembled the 243,000-square-foot Chelsea site, and Adam Neumann entered the deal in November 2017 when he bought the $65 million mortgage that Bank of America had once held on the project. The JV initially planned a WeLive location at the site, and is now reportedly looking to build a mix of office and retail space.
- Staying busy: The infamous WeWork co-founder recently filed a lawsuit against SoftBank for reneging on a $3 billion offer to buy shares in the co-working company. Neumann was set to sell as much as $970 million in shares as part of the scrapped offer.
- How he walked away a winner: Neumann sold $361 million worth of shares when SoftBank first invested in the company in 2017. The size of the sell-offs means that WeWork’s two biggest shareholders before SoftBank came on the scenes, accounted for almost a third of the $2.3 billion of shares the Japanese Conglomerate purchased from insiders before the company aborted its failed IPO last year. The sheer incompetence and naïveté of Masayoshi Son is startling, while the hubris and recklessness of ousted CEO Adam Neumaan will be studied in business schools for years to come. [CO+Telegraph]