The Real Deal New York

WeWork taking entire office portion of Tribeca building

The co-working company signed a 60K sf lease across four floors
By Christian Bautista | June 14, 2018 02:00PM

UAL Principal Albert Laboz, WeWork CEO Adam Neumann, and 408 Broadway

WeWork is taking the entire office portion of United American Land’s 408 Broadway in Tribeca.

The co-working firm signed a 60,000-square-foot lease at the five-story building, a source told The Real Deal. WeWork’s new location will cover floors two to five. The building’s ground floor is currently home to clothing retailer OMG Jeans, according to UAL’s website.

WeWork’s new space was previously occupied by design consultancy firm IDEO and the Long Island Business Institute. IDEO has relocated to 396 Hudson Street. The Long Island Business Institute, meanwhile, signed a 25,000-square-foot lease at 218 West 40th Street in February.

WeWork confirmed the lease. According to Granit Gjonbalaj, the firm’s Chief Development Officer, the deal “reflects WeWork’s confidence in the continued demand for (its) fast-growing community in Lower Manhattan.”

The deal increases WeWork’s footprint in the neighborhood to four locations. Its other branches in the area include 205 Hudson Street and 11 Park Place, according to its website. The company also recent closed lease deals at 71 Fifth Avenue  and 130 Fifth Avenue . WeWork’s billowing number of locations coincided with its strong financial performance. During the first quarter, the company posted a 110 percent hike in revenue to $342 million.

WeWork’s value may also grow exponentially over the next few years. During a recent appearance at a London conference, Rajeev Misra, the head of SoftBank’s Vision Fund, revealed that WeWork is looking to raise money at a $35 billion valuation. The company was valued at $20 billion during its latest funding round last July. Misra also predicted that the company may hit a $100 billion valuation over the next few years.

Albert Laboz’s UAL bought the 56,000-square-foot property for $26.5 million in 2011, according to property records.

The landlord did not respond to requests for comment. Newmark Knight Frank’s Justin DiMare, who handles leasing in the building, declined to comment.