Adam Neumann-Tied Firm Lands $108M Construction Loan for Miami Tower
Is Adam Neumann getting into development too?
A company tied to the controversial former CEO of WeWork landed a $108 million loan from CIM Group, property records show. The financing will go towards building the second phase of Caoba, a residential development in Downtown Miami.
Mark Lapidus, WeWork’s former head of real estate, signed the mortgage document on behalf of the borrower. Lapidus has been linked to Neumann’s other real estate purchases following his exit from WeWork, including the acquisition of a Fort Lauderdale retail space just last week and an apartment complex in Nashville.
The 20,980-square-foot site is located at 697 N Miami Avenue, just west of Caoba’s first phase, a 444-unit tower completed in 2019. A rendering shows that the two properties will be connected and likely be a copy of the original building.
Neumann already owns much of the Caobo development. He’s under contract to buy a majority stake in the first phase for approximately $200 million, The Wall Street Journal reported last month.
The L.A.-based CIM Group was the developer of the first phase, and owns both sites — in addition to being the lender on the second phase. It was not immediately clear to what degree CIM Group would remain involved in the second phase. A representative for the company did not immediately respond to a request for comment.
Caoba is part of Miami Worldcenter, one of the largest private master developments in the country, spanning 27 acres in the heart of Miami. Representatives for Miami Worldcenter did not immediately respond to a request for comment.
In his exit agreement from WeWork, the company Neumann founded, he reaped hundreds of millions of dollars. Post-WeWork, Neumann has become a landlord, snapping up residential rental complexes in the Southeast, including Yard 8 in Midtown Miami and Society Las Olas in Fort Lauderdale.
With the Caoba loan, it appears Neumann will try his luck at developing, seemingly a first for him. WeWork rarely owned the offices that it offered to consumers, opting instead to lease them.
A spokesperson for Neumann could not be reached for comment.
Julia Echikson can be reached at email@example.com.