SL Green sheds former WeWork office space for $101M

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In 2018, following a full renovation of the building, WeWork leased the entire office portion. In February 2020 SL Green hinted that it would be looking to sell off the building to reduce its exposure to coworking tenants including WeWork and Knotel.

By the following year, WeWork and SL Green had terminated the lease due to the pandemic, and the landlord secured $11.4 million from the coworking company in a legal settlement over the balance of the lease. 

The office space is currently vacant, and the buyer of the property is currently unknown. 

Earlier in the pandemic, the coworking company shed several sites in its New York City portfolio, including the second location it ever opened, at 349 Fifth Ave., as well as at the Sapir Organization’s 261 Madison Ave., William Gottlieb Real Estate’s 1 Little W. 12th St. and the Chetrit Group’s 404 Fifth Ave.

The recently sold property is directly across the street from Saks Fifth Avenue, which had partnered with WeWork last year to launch SaksWorks, a coworking concept in Saks Fifth Avenue and Lord & Taylor stores around the country. In April Hudson’s Bay Co., which owns those department stores, announced a majority investment in coworking firm Convene, which is now the operator of SaksWorks locations. 

SL Green has sold off several large assets in recent months to raise cash for reinvestment and pay off debts, said its chief investment officer, Harrison Sitomer, including properties at 110 E. 42nd St., 1080 Amsterdam Ave., 707 Seventh Ave. and 590 Fifth Ave., to name a few. 

SL Green declined to comment on the sale.



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