- Tech giant has decided to purchase WeWork’s NYC property for a deal of USD 1.15 billion.
- This purchase is expected to mark Amazon’s largest real estate acquisition till date.
In a recent news, the global tech giant, Amazon, Inc., reportedly announced expanding in the New York city with the purchase of NYC Flagship Lord & Taylor building which is apparently owned by WeWork. According to reliable sources, the transaction amount of the deal is nearly USD 1.15 billion.
It has been claimed that this purchase is anticipated to mark Amazon’s largest real estate acquisition of all times. Apparently, this deal would render huge implications for both the tech giant and WeWork, proving the latter a much needed capital.
As per official reports, the 10-storied 660000 sq. foot building housed the flagship Fifth Avenue store of Lord and Taylor which is apparently owned by WeWork, a co-working office space company, that gathered a hefty valuation of USD 850 million in the early 2019.
Under this acquisition, the tech giant would relocate its 4000 employees into this newly acquired building in about 18 months from today. Moreover, the reports of last year cited that Amazon considered renting out the entire building for its operation in the city if Manhattan.
Speculations have it that Amazon would be paying off USD 750 million in the construction loans that WeWork took out for the refurbishing of property, whereas the rest comes through USD 350 million in equity.
However, the WeWork and Amazon officials did not come up to speak on the deal.
This is Amazon’s only operating office in the city of New York. The company has previously taken into account Long Island Coty for its much-sought headquarters, but instantly called off the plan due to opposition to a sizeable incentive package offered to the company. Besides, the company has also signed a leased for acquisition of 335000 square feet of office space in the city’s Hudson Yard.
Source credit: https://www.foxbusiness.com/real-estate/amazon-buys-nyc-lord-taylor-store
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