WeWork To Buy Lord & Taylor Fifth Avenue Flagship

WeWork opened its office in Harlem afew years back, now Crains NY reports that Lord & Taylor’s century-old flagship store on Fifth Avenue is set to be sold for $850 million to the real estate investment arm of WeWork.

The acquisition marks the co-working company’s evolution as a major landlord and adds another location to the more than three dozen sites it owns, operates or plans to open in Manhattan. The department store will maintain a downsized retail presence, according to the Wall Street Journal, giving way to office space and a headquarters for WeWorkCrain’s reported earlier this month that WeWork was clearing tenants from a Chelsea location in order to expand headquarters space there.

The deal was conducted through a joint venture between WeWork and private-equity firm Rhône Group. Rhône is also taking a $500 million piece of Hudson’s Bay Co., the Toronto-based parent company of Lord & Taylor, which has been looking to ease its debt burden.

Lord & Taylor’s century-old flagship store on Fifth Avenue is set to be sold for $850 million to the real estate investment arm of WeWork.

The acquisition marks the co-working company’s evolution as a major landlord and adds another location to the more than three dozen sites it owns, operates or plans to open in Manhattan. The department store will maintain a downsized retail presence, according to the Wall Street Journal, giving way to office space and a headquarters for WeWorkCrain’s reported earlier this month that WeWork was clearing tenants from a Chelsea location in order to expand headquarters space there.

The deal was conducted through a joint venture between WeWork and private-equity firm Rhône Group. Rhône is also taking a $500 million piece of Hudson’s Bay Co., the Toronto-based parent company of Lord & Taylor, which has been looking to ease its debt burden.

Lord & Taylor’s flagship store opened on Fifth Avenue in 1914 but has a lower sales impact than Hudson’s Bay’s Saks Fifth Avenue store 10 blocks north, the firm said. The retail market—especially for large department stores like Macy’s and Lord & Taylor—is struggling in the face of e-commerce competitors, while office landlords are seeing a steady demand for space. WeWork was recently valued at $20 billion and has been sitting on a $4.4 billion pot of cash from a SoftBank investment earlier this year.

Also:  The Best Restaurants To Visit In Harlem, New York City

Photo credit source


About Harlem World Magazine

Harlem World Magazine is about living your best life and style around the block and around the world of Harlem.

Leave a Reply

Get The Editor's Picks Newsletter From Our Editor's!