Tishman Speyer pays $59M for long-term leasehold at WeWork’s Soho West building

Shared office specialist and AEW Capital paid $33M in 2012 for 175 Varick St. lease

From left: Jerry Speyer, a rendering of the new facade of 175 Varick Street and Adam Neumann
From left: Jerry Speyer, a rendering of the new facade of 175 Varick Street and Adam Neumann

Tishman Speyer paid $58.7 million to a partnership between WeWork and real estate investor AEW Capital Management for the long-term leasehold at 175 Varick Street, according to city records filed Tuesday. The 187,000-square-foot Soho building is home to a 75,000-square-foot WeWork shared office.

WeWork, one of the city’s largest shared office space providers, teamed up with Boston-based AEW Capital on the $32.7 million acquisition of the long-term leasehold in 2012 from Gary Barnett’s Extell Development, as The Real Deal first reported. Earlier this year, WeWork commissioned architecture firm Spector Group to design a new base to the property’s exterior façade.

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Extell had paid $24 million for the leasehold in 2005. The Lehman family owns the land underneath the property, also known as the fee interest.

Representatives for WeWork, AEW Capital and Tishman Speyer did not immediately respond to requests for comment.

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