Amazon to Buy Former Lord & Taylor Building in New York for $1.15 Billion

Amazon will buy the former Lord & Taylor flagship building in midtown Manhattan.
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Amazon.com  (AMZN) - Get Report will buy the former Lord & Taylor flagship building in midtown Manhattan to serve at its New York headquarters, the New York Post reported.

The 11-story Fifth Avenue building will house several thousand employees in the coming years, the Post said, citing a source close to the situation.

The property had been leased to WeWork, but the office-sharing company's plans to use the building as its headquarters fell apart after investors soured on its much-touted multibillion-dollar plan to go public.

Amazon will pay  $750 million in construction loans taken out for WeWork’s renovation of the space, the Post said, while the remainder consists of more than $350 million in equity for the building’s current owners.

The Lord & Taylor Building is located on Fifth Avenue in Manhattan between West 38th and West 39th Streets. It was built from 1913 to 1914. In 2006, Lord & Taylor was sold to Federated Department Stores, now Macy's (M) - Get Report. In June 2018, Lord & Taylor announced that it would be leaving the Fifth Avenue location.

In December, Amazon leased 335,000 square feet in Hudson Yards, with plans to house 1,500 employees there. Amazon also has reportedly been in talks to lease 400,000 square feet of additional space at 460 W. 34th St, the Post said.

Last year, Amazon pulled the plug on a planned Long Island City, Queens location after it sparked a fierce backlash from some local leaders who decried the secretive nature of the deal and its potential negative impacts on the area.

Amazon didn't immediately respond to a request for comment.