Adam Neumann-Tied Firm Secures $108M Miami Tower Construction Loan – Trade Observer

Is Adam Neumann get into development too?

A company linked to the controversial former CEO of We work secured a $108 million loan from CIM Group, the property records show. The financing will be used for the construction of the second phase of caobaa residential development in downtown Miami.

Marc Lapidus, Former WeWork property manager, 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 commercial space in Fort Lauderdale last week and an apartment complex in Nashville.

The 20,980 square foot site is located at 697 N Miami Avenuejust west of Caoba’s first phase, a 444-unit tower completed in 2019. A rendering shows the two properties will be connected and will likely be a copy of the original building.

Neumann already owns much of Caobo’s development. He is under contract to buy a majority stake in the first phase for around $200 million, The Wall Street Journal reported last month.

Los Angeles-based CIM Group was the developer for the first phase and owns both sites, in addition to being the lender for the second phase. It was not immediately clear to what extent CIM Group would remain involved in the second phase. A company representative did not immediately respond to a request for comment.

Caoba is part of Miami World Center, one of the nation’s largest private master developments, spanning 27 acres in the heart of Miami. Representatives for Miami Worldcenter did not immediately respond to a request for comment.

In his exit deal from WeWork, the company founded by Neumann, he reaped hundreds of millions of dollars. After WeWork, Neumann became a landlord, snapping up residential rental complexes in the Southeast, including Court 8 in Midtown Miami and Las Olas Society in Fort Lauderdale.

With the Caoba loan, it looks like Neumann will try his chance to develop, apparently a first for him. WeWork rarely owned the offices it offered to consumers, preferring instead to rent them.

A spokesperson for Neumann could not be reached for comment.

Julia Echikson can be contacted at [email protected].

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