The Rudin family is partnering with Industrious on a 52,000-SF location at 32 Sixth Avenue in Tribeca after dealing with WeWork for years, according to the Real Deal.
- Backdrop: Adam Neumann would frequently tout his relationship with Bill Rudin to help bolster his credibility within the real estate world. WeWork is the anchor tenant at Dock 72 in the Brooklyn Navy Yard and fully occupies 300,000 SF at Rudin’s 110 Wall Street.
- Giving them a flier: Michael Rudin: “Given the size of the space that they’re taking, we thought it was an appropriate way to see what they can do and what kind of value that they can add to the building.”
- Partner with coworking firms at your own peril: In related news, WeWork just abandoned its 6-story, 48,000-SF coworking space at Zar Property NY’s 349 Fifth Avenue. The fully occupied WeWork property was packaged in a CMBS that reported delinquencies twice in the past year, according to Trepp. However, Zar did secure a $30 million Refi from Signature Bank in December, Crain’s reported.
- From WeWork exposé, Billion Dollar Loser: After pitching WeWork founder Adam Neumann’s concept to his colleagues, Zar still wanted tenants with longer-term viability. But after sharing a bottle of Johnnie Walker with the charismatic co-founder, he bit the bullet and inked a 15-year deal.
- Heard on the Street: WeWork spokesperson responds: “Over the last 12 months WeWork has continued to optimize its global real estate portfolio as a part of the company’s plan to achieve profitability. With an abundance of supply in our markets, we have been able to rightsize our footprint while also ensuring our members can continue to access first-class flex office space.” [TRD+Crain’s]