Yard sale? NY-based co-working firm is hunting for equity

With 14 NYC locations, the firm led by Morris Levy and Richard Beyda has held discussions with Knotel and the Office Group

New York /
May.May 06, 2019 06:22 PM
The Yard CEO Morris Levy and The Yard coworking space (Credit: iStock and Croissant Blog)

The Yard CEO Morris Levy and The Yard coworking space (Credit: iStock and Croissant Blog)

Executives at the Yard, a New York-based flexible-office space firm with 14 locations, have been in talks with competitors about potentially selling the company or a partial stake in it, sources familiar with the discussions told The Real Deal.

According to the sources, the Yard held discussions with the Office Group, a London-based company owned by the Blackstone Group. Office Group has 33 locations globally and has been looking to crack into the New York market for about a year. The Yard also had preliminary discussions with Knotel regarding a potential sale, according to people who were involved. Nothing came of those talks.

In an email, Morris Levy, co-founder and CEO of the Yard, acknowledged that the firm had been approached by “multiple firms,” but said the firm was instead working with investment-banking firm Houlihan Lokey to raise “growth equity.”

“We are currently focused on funding a phase of massive growth, the most important part of which has been to maintain the brand focus, feel and identity that are the reasons why businesses choose The Yard,” Levy said.

Representatives for the Office Group didn’t immediately respond to requests for comment. Knotel, which is in talks for a roughly $200 million Series C round, declined to comment.

Levy co-founded the Yard with Richard Beyda in 2011, opening a location in Williamsburg. It started off with private funding and secured a $15 million credit line from an Israeli bank in 2017.

Firms of similar size to the Yard have been acquired by the larger players dominating the space. Industrious, which has 65 locations, last week acquired California-based TechSpace, which has seven locations. Last August, it also acquired Chicago-based firm Assemble, with three locations. The sector’s largest player, WeWork, is a key investor in female-focused co-working company The Wing.


Related Articles

arrow_forward_ios
No Joke: Pete Davidson (left) and Colin Jost just purchased a Staten Island Ferry boat. (Getty)
Floating real estate: Colin Jost, Pete Davidson buy Staten Island Ferry boat
Floating real estate: Colin Jost, Pete Davidson buy Staten Island Ferry boat
Vicky Ward (CNN)
Vicky Ward breaks down New York State’s Trump investigation
Vicky Ward breaks down New York State’s Trump investigation
Lloyd's of London headquarters at Lime Street (Lloyd's of London/CC BY 2.5 - via Wikimedia Commons, iStock)
Lloyd’s of London may exit “Inside Out” home after three decades
Lloyd’s of London may exit “Inside Out” home after three decades
(iStock/Illustration by Kevin Rebong for The Real Deal)
NYC investment sales hit multi-year peak to end 2021
NYC investment sales hit multi-year peak to end 2021
Tax assessments rise 9%, signaling higher bills for landlords
Tax assessments rise 9%, signaling higher bills for landlords
Tax assessments rise 9%, signaling higher bills for landlords
From left: Ryan Johnson and Jeff Berens, co-founders of Culdesac, in front of a rendering of Culdesac Tempe (Culdesac, iStock)
Startup that wants to build car-free cities raises $30M Series A
Startup that wants to build car-free cities raises $30M Series A
From left: Stephen Schwarzman, chairman, Blackstone; Barry Sternlicht, chief executive officer, Starwood Capital Group (Getty Images, Brookfield Asset Management/Illustration by Steven Dilakian for The Real Deal)
Blackstone, Starwood to pay $1.5B for WoodSpring Suites properties
Blackstone, Starwood to pay $1.5B for WoodSpring Suites properties
Keith Powers, Democratic District 4 representative on the New York City Council, in front of 45 East 45th Street (Getty Images, The Roosevelt Hotel, iStock/Illustration by Steven Dilakian for The Real Deal)
Local lawmakers aim to landmark shuttered Roosevelt Hotel
Local lawmakers aim to landmark shuttered Roosevelt Hotel
arrow_forward_ios

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

Loading...