Amazon got smacked by the pandemic after it inked a splashy deal to buy the historic Lord & Taylor flagship — but it doubled down on the wager and is now poised to open one of New York City’s premier office spaces, The Post has learned.
On March 12, 2020 — one day before the coronavirus pandemic hit and sent the Big Apple real estate market into a tailspin — the Seattle-based web giant closed a $1.15 billion deal to buy the iconic retail location at 424 Fifth Ave., according to sources close to the negotiations.
“One day later they would have killed the deal,” an insider briefed on the situation said of Amazon.
Nevertheless, Amazon — which in 2019 ditched a plan to build a massive campus in Queens dubbed HQ2 following opposition from politicians including Alexandria Ocasio-Cortez — has stuck with its major bet on New York City office space.
Billionaire Jeff Bezos’ company is now poised to reopen the 109-year-old, 11-story, Italian Renaissance Revival tower — but this time as a posh office building for 2,000 employees with a landscaped rooftop that boasts trees, an indoor dining area and even a dog run, as confirmed in exclusive video footage obtained by The Post.
“It’s like walking through a city park,” said a source who has seen the space.
Amazon is looking to “take away the reasons people don’t want to go into an office to work,” the source added.
“We’re proud of our investments in our New York Tech Hub and look forward to welcoming 2,000 employees to 424 5th Avenue later this summer,” John Schoettler, Amazon’s vice president of global real estate & facilities, said in a written statement.
Amazon bought the tower from a joint venture between WeWork’s owner and the hedge fund Rhone Capital; and Hudson’s Bay Co., the owner of Saks Fifth Avenue.
The trio had bought the building in late 2017 for $850 million with a plan to convert it into WeWork’s New York headquarters.
But the co-working startup imploded shortly thereafter and never moved in.
The landmark building at the corner of West 38th Street is slated to begin welcoming employees as soon as next month, sources told The Post.
Stunning rooftop amenities will include a posh indoor cafeteria and lounge with oversize seating. Floor-to-ceiling windows will boast panoramic views of the city.
Strolling paths for employees will be strung with lights for those taking a break during a late shift.
Meanwhile — in keeping with Amazon’s famously dog-friendly campus in Seattle — a fenced dog run is under construction on the roof, complete with a fountain for thirsty canines during the summer months.
Amazon spokesperson Zach Goldsztejn confirmed that employees will be arriving this summer from the company’s “Tech Hub,” which includes Amazon Web Services, its stores, finance and legal departments who currently are spread across multiple locations in Manhattan, Jersey City, NJ and Newark, NJ.
Amazon will continue to rent offices at other Manhattan locations including in Hudson Yards at 410 10th Ave., according to Goldsztejn.
The Lord & Taylor building is still awash in scaffolding and construction workers as renovations near completion.
A retail space appears far from finished and it’s not clear who the tenants will be. Still, New York business boosters are thrilled about the company’s enlarged bet on Midtown Manhattan.
“When that building is open and they are in there, they will be key players in [nearby] Bryant Park,” Dan Biederman, president of both the Bryant Park Corporation and the 34th Street Partnership said. Amazon, he added, has already donated more than $600,000 to support programming at the popular park during the pandemic.
The nearby Park Terrace Hotel is hopeful that Amazonians will be regulars at its own restaurant and rooftop bar.
“I’m sure our sales team has reached out to them,” said Joseph Turano, the hotel’s chief of operations. “It’s a great sign of New York City’s resilience that Amazon is coming to the area.”
The New York City push stands in contrast with a construction pause at its Virginia headquarters at PenPlace, despite Amazon hiring 8,000 employees to report to the office.
Those new hires will instead report to the nearby Met Park campus. The first phase of the development opened last week.
Amazon’s Big Apple expansion also comes as its employees across the country have protested a recent return to the office mandate.
In February, CEO Andy Jassy ordered employees to come back at least three days per week starting on May 1.
About 30,000 workers signed a petition begging Jassy to backpedal, and on May 31 some 2,000 Seattle-based employees walked off the job, according to reports.
Amazon said the number of employees who walked off was closer to 300.
