February 12, 2019
HBC has closed on the sale of the Lord & Taylor Fifth Avenue building to WeWork Property Investors (WPI), the investment vehicle managed by WeWork and the Rhone Group. The 10-story Midtown landmark, long home to Lord & Taylor’s recently-shuttered flagship store, sold for $850 million, consistent with terms that were disclosed when the sale was announced in October 2017.
“This transaction reinforces HBC’s ability to identify undervalued real estate investments with great potential,” said Richard Baker, HBC’s executive chairman. “We continue to strengthen our retail business and unlock the value of our real estate assets.”
WPI exercised its option to convert $125 million of the transaction value into a preferred equity interest in the building held by HBC through a joint venture structure. The planned redevelopment of the 663,000-square-foot property at 424 Fifth Ave., which will house WeWork’s global headquarters, is being undertaken in collaboration with architect Bjarke Ingels.
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