NEW YORK CITY—WeWork is purchasing the New York flagship building of Lord & Taylor, located at 424 Fifth Avenue for $850 million. The purchase is part of multiple global transactions between WeWork and the Canadian retailer, Hudson Bay Company, the parent company of Lord & Taylor, which will include leasing company spaces at various HBC department stores.
Lord & Taylor will operate at the Fifth Avenue location in the entire building through the 2018 holiday season. It will then continue to run a scaled-down version of the store, in a redesigned space of 150,000 square feet, less than a quarter of the building. The rest of the building will be converted into WeWork’s New York headquarters and office space.
“WeWork could not be what it is today if it wasn’t for our New York roots. The WeWork of today is a testament to the energy and hustle of this great city and it permeates everything we do,” says Adam Neumann, the company’s CEO and co-founder. He notes the acquisition of the Lord & Taylor building is a statement of intent and commitment to New York City. Noting the business focuses on human connections in physical spaces, he says this move will also re-energize the traditional retail experience.
Although the details are not yet confirmed, a WeWork spokesperson tells GlobeSt.com it is expected that Lord & Taylor will continue street level operations, and WeWork will be on higher floors. The company’s current New York headquarters are located at 115 W. 18th Street.