Co-working firm the Yard lands $15M in funding from Israeli bank

Startup plans to spend the money on new locations

New York /
May.May 25, 2017 10:09 AM

Co-working company the Yard landed a $15 million credit line from the Israel Discount Bank of New York.

The firm, which was founded in 2011 operates nine office spaces in New York and Philadelphia, will use the money to pay for new locations. It plans to have 14 locations open by the end of the year and is in talks for six more, with plans to expand to cities like Washington, D.C., Boston, Los Angeles and San Francisco.

“This is a difficult business to fund because you don’t own the properties,” said co-founder Richard Beyda. He said the Yard was able to land the loan, which carries an interest rate of around 4 percent, in part because of the principals’ prior relationship to the bank.

He added that borrowing money was always the preferred option compared to raising equity. “Why give up a piece of your business if you can finance?” he said. The company claims to have raised $30 million from investors prior to this loan.

The deal comes two months after Industrious, another New York-based co-working company, raised $25 million from VC investors, bringing the firm’s total funding to $76 million.  Meanwhile WeWork secured a $300 million investment from the Japanese conglomerate SoftBank.

IDB is an active commercial real estate lender in New York. In July, for example, it financed the Orbach Group’s TRData LogoTINY $26 million acquisition of an Upper West Side rental building.


Related Articles

arrow_forward_ios
Illustration of Stefan Soloviev (HaydenSoloviev, CC BY-SA 4.0, via Wikimedia Commons, Getty)
Soloviev bets long-dormant Midtown East site in casino sweepstakes
Soloviev bets long-dormant Midtown East site in casino sweepstakes
CHIP's Jay Martin and HCR Commissioner RuthAnne Visnauskas (Getty)
Lies, damn lies, and statistics: Did rent-stabilized vacancies really fall?
Lies, damn lies, and statistics: Did rent-stabilized vacancies really fall?
PulteGroup's Ryan R. Marshall and RedFin's Glenn Kelman (PulteGroup, RedFin, Getty)
Wall Street is bidding up housing stocks again
Wall Street is bidding up housing stocks again
Empire Capital Holdings' Josh Rahmani, Hakimian Capital's Michael Hakimian, RXR's Scott Rechler and 1330 6th Avenue (Getty, Hakimian Capital, Empire Capital Holdings, 1330aofa.com)
Empire Capital, partners close on $320M deal for 1330 Sixth Ave
Empire Capital, partners close on $320M deal for 1330 Sixth Ave
Urban Commons' Salvatore G. Takoushian with Wagner at the Battery
Urban Commons puts FiDi hotel into bankruptcy
Urban Commons puts FiDi hotel into bankruptcy
(Illustration by The Real Deal; Getty)
Multifamily faces stricter emission caps
Multifamily faces stricter emission caps
Amir Korangy, Michael Shvo and Jeff Greene
Michael Shvo and Jeff Greene talk distress, opportunities in office
Michael Shvo and Jeff Greene talk distress, opportunities in office
(Getty)
Developers went on permit palooza before 421a expiration
Developers went on permit palooza before 421a expiration
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...