Lord & Taylor to Become WeWork Headquarters in NYC Flagship Sale

Lord & Taylor to Become WeWork Headquarters in NYC Flagship Sale

After that, it will be converted into WeWork's NY headquarters along with WeWork office space and a redesigned Lord & Taylor store of approximately 150,000 square feet (14,000 square meters), according to the companies.

Under the deal, Lord & Taylor will sell its almost 676,000 square-foot flagship to WeWork for $850 million after the 2018 holiday season. (TSX:HBC) is selling its Lord & Taylor Fifth Avenue building in NY to a joint venture between WeWork and Rhone Capital in a deal valued at $1.075 billion. The property was appraised recently at about $3.7 billion, according to the New York Times.

Chairman Richard Baker will serve as the interim CEO while the company searches for a replacement. At that point, Lord & Taylor will limit its operations in the landmarked building to roughly 150,000 square feet.

The retail group has been under pressure for some time to create value from some of its real estate holdings.




The deal will help HBC reduce its debt by more than $1 billion by capitalizing on the value of its real estate, something that the company's activist shareholder Land & Buildings has been pushing.

"The path to maximizing the value of Hudson's Bay lies in its real estate, not its retail brands", Jonathan Litt, the founder of Land and Buildings Investment Management, wrote in a letter to the board of Hudson's Bay in June.

HBC's Baker credits WeWork with its ability to build active communities.

New York-based WeWork leases office space and rents it out to individuals and small companies, namely startups. The department store was the first to create Christmas windows for sheer entertainment, rather than for selling merchandise. "People from every walk of life are seeking spaces in big cities that allow for human connections". The Italian Renaissance building was specially designed for the retailer-part of the long march uptown over the 19th and early 20th centuries by the ascendant wealthy and the venues that catered to them, and one of many elaborate temples to commercial culture built in the era.

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