Tishman Speyer pays $59M for long-term leasehold at WeWork’s Soho West building

Shared office specialist and AEW Capital paid $33M in 2012 for 175 Varick St. lease

From left: Jerry Speyer, a rendering of the new facade of 175 Varick Street and Adam Neumann
From left: Jerry Speyer, a rendering of the new facade of 175 Varick Street and Adam Neumann

Tishman Speyer paid $58.7 million to a partnership between WeWork and real estate investor AEW Capital Management for the long-term leasehold at 175 Varick Street, according to city records filed Tuesday. The 187,000-square-foot Soho building is home to a 75,000-square-foot WeWork shared office.

WeWork, one of the city’s largest shared office space providers, teamed up with Boston-based AEW Capital on the $32.7 million acquisition of the long-term leasehold in 2012 from Gary Barnett’s Extell Development, as The Real Deal first reported. Earlier this year, WeWork commissioned architecture firm Spector Group to design a new base to the property’s exterior façade.

Extell had paid $24 million for the leasehold in 2005. The Lehman family owns the land underneath the property, also known as the fee interest.

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Representatives for WeWork, AEW Capital and Tishman Speyer did not immediately respond to requests for comment.