Amazon Just Bought Lord & Taylor Building from WeWork. Did It Overpay?

The e-commerce giant paid more than the building’s previous sales price. It may still have been a good deal, capital markets experts say.

At a time when most investors are nervous to embark on new deals, Amazon has charged ahead with plans to expand its footprint in the Big Apple. The e-commerce giant acquired the iconic Lord & Taylor flagship building in Midtown Manhattan from troubled co-working operator WeWork for $978 million, according to New York City Department of Finance records.

While at least a temporary recession is now all but a certainty, this deal was in the works long before COVID-19 became an immediate threat to the U.S., notes Eric Anton, associate broker in the New York office of brokerage firm Marcus & Millichap.

WeWork acquired the building for its headquarters in 2019 and announced a lavish, $438 million renovation project to reposition it to office space. But a failed attempt to go public followed, and the company never moved into the building.

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