Adam Neumann, Jeff Dagowitz get $75M refi for Chelsea dev site

WeLive location was once planned for site

New York /
Jul.July 14, 2020 11:00 AM
123 West 23rd Street and Adam Neumann (Google Maps; Getty Images)

123 West 23rd Street and Adam Neumann (Google Maps; Getty Images)

Former WeWork CEO Adam Neumann and partner Jeffrey Dagowitz have secured a $75 million refinancing for a Chelsea development site.

The new financing from G4 Capital Partners replaces an existing $65 million mortgage on the property at 123 West 23rd Street, Commercial Observer reported. Iron Hound Management negotiated the debt.

Neumann took over the earlier mortgage from Bank of America in 2017. At the time, sources told The Real Deal that Neumann’s firm had considered building a WeLive co-living tower on the site, which includes parcels at 123-131 West 23rd Street and 116-120 West 24th Street.

Following Neumann’s departure from the firm and amid mounting financial pressure from the coronavirus, WeWork is now reportedly considering abandoning the co-living business altogether.

The site currently has 243,000 square feet in development rights, which could be used for a mixed-use hotel and residential development, or a mixed office and retail project, sources told CO.

In October, TRD reported that Churchill Real Estate Holdings had prepared a $100 million refinancing for the site, which would allow Neumann to repay hundreds of millions of dollars in debt owed to lenders such as JPMorgan.

SoftBank provided a massive rescue package for WeWork soon after, including $1.7 billion to Neumann himself, and the Churchill deal did not close.

“There’s interest from a lot of lenders to provide senior debt financing,” Dagowitz said at the time, adding that “everything is very early stage and we are evaluating options.” [CO] — Kevin Sun


Related Articles

arrow_forward_ios
President-elect Joe Biden's relief plan focuses on the coronavirus and opening schools. (Getty)

Biden’s $1.9T package would extend eviction ban, boost rent relief

Biden’s $1.9T package would extend eviction ban, boost rent relief
TF Cornerstone President Frederick Elghanayan with 2-10 54th Avenue and 55-01 Second Street in Long Island City (Google Maps)

The 10 biggest new project filings in NYC

The 10 biggest new project filings in NYC
Neil Shekhter (Shekhter by Kevin Scanlon; iStock)

Santa Monica mega-portfolio officially hits market

Santa Monica mega-portfolio officially hits market
A rendering of 250 Water Street and Howard Hughes Corporation CEO David O'Reilly (SOM; Getty; iStock)

Howard Hughes’ Seaport project dealt major blow

Howard Hughes’ Seaport project dealt major blow
Ray McGuire photographed by Axel Dupeux.

The Closing: Ray McGuire

The Closing: Ray McGuire
SK Development's Scott Shnay and Ironstate's Michael Barry (Google Maps, Scott Shnay via LinkedIn)

Noho offices move forward where city wants housing

Noho offices move forward where city wants housing
Gov. Andrew Cuomo and Brookfield’s Brian Kingston with the High Line and the Moynihan Train Hall (Getty)

New High Line section will connect to Moynihan Train Hall

New High Line section will connect to Moynihan Train Hall
Mickey Rabina and 520 Fifth Ave. (Rabina, Ceruzzi Properties)

Rabina files plans for 70-story tower at beleaguered Fifth Ave site

Rabina files plans for 70-story tower at beleaguered Fifth Ave site
arrow_forward_ios

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

Loading...