Amazon buying Lord & Taylor building for $1.1B

Purchase price works out to about $2K psf

TRD New York /
Mar.March 12, 2020 06:20 PM
Amazon.com founder and CEO Jeff Bezos with the Lord & Taylor Building (Credit: David Ryder/Getty Images, and Ajay Suresh/Wikipedia)

Amazon.com founder and CEO Jeff Bezos with the Lord & Taylor Building (Credit: David Ryder/Getty Images, and Ajay Suresh/Wikipedia)

Amazon is buying the Lord & Taylor building from WeWork for $1.15 billion.

The bulk of the purchase price comes in the form of a $750 million construction loan WeWork took out to renovate the massive property, which Amazon will pay down, according to the New York Post. The rest is approximately $350 million in equity the e-commerce giant will shell out for the building at 424 5th Avenue.

The Real Deal first reported in late February that Amazon was in talks to buy the 660,000-square-foot building, which WeWork had acquired to use as its corporate headquarters.

Negotiations on the property heated up over the past 60 days as Amazon’s tech competitors stared inking big leases in the city, according to the Post.

“Jeff Bezos toured three properties in Manhattan at Hudson Yards, the Farley [Building] and the Lord & Taylor property, and he chose Fifth Avenue,” a source with knowledge of the deal told the newspaper.

WeWork bought the building for $850 million in 2017, before the company’s botched initial public offering attempt sent the company into a tailspin. Former WeWork CEO Adam Neumann, who had invested in the purchase, won’t make any money on the sale, a source told the Post.

Amazon’s purchase price works out to about $2,000 per square foot. [NYP]Rich Bockmann


Related Articles

arrow_forward_ios
Amazon CEO Jeff Bezos (Getty; Unsplash)

Amazon to open 1,000 warehouses in the suburbs

Amazon to open 1,000 warehouses in the suburbs
Amazon CEO Jeff Bezos (Getty)

Amazon to open 100 more distribution centers this month

Amazon to open 100 more distribution centers this month
Kyle Bragg and Eric Benaim

Backers of big Queens megaprojects say city needs the jobs, homes

Backers of big Queens megaprojects say city needs the jobs, homes
25 Kent Avenue and Amazon CEO Jeff Bezos (25 Kent; Getty)

Amazon Music is coming to Brooklyn’s office market

Amazon Music is coming to Brooklyn’s office market
Mayor Bill de Blasio (Getty)

“Status quo means going backwards:” How development fell from grace under de Blasio

“Status quo means going backwards:” How development fell from grace under de Blasio
410 Tenth Avenue with SL Green’s Andrew Mathias and Marc Holliday (Google Maps; SL Green)

SL Green gets $600M construction loan for 410 Tenth Avenue

SL Green gets $600M construction loan for 410 Tenth Avenue
Jeff Bezos (Getty)

Here are the landlords benefiting from Amazon’s tech workforce expansion

Here are the landlords benefiting from Amazon’s tech workforce expansion
Jeff Bezos and Bellevue Washington (Getty; Unsplash)

Amazon nabs 2M sf of new office space near Seattle

Amazon nabs 2M sf of new office space near Seattle
arrow_forward_ios

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

Loading...