Earlier this year, WeWork was set to land a huge deal with Amazon at New York City’s Lord & Taylor Building, but now the deal has reportedly been called off.
According to reports, Amazon is now favoring a 400,000 square foot lease at SL Green’s 460 West 34th Street development.
WeWork told the New York Post that it was “fully committed” to meeting obligations of that building, but it is expected to be a big problem for the struggling coworking operator.
In February, WeWork Property Investors — a joint venture between WeWork and Rhône Group — paid $850 million to Hudson Bay Co. for the building. JPMorgan Chase, Starwood Property Trust and another lender provided a $600 million loan for the purchase.
This arrangement came under scrutiny as some analysts found it to be self-dealing. WeWork signed a lease with WeWork Property Investors after it purchased the entire 660,000 square foot building.
Before rumors that Amazon would be signing a lease to take up space at the iconic building start surfacing, the building was set to be the coworking firm’s new headquarters.