A company associated with controversial former WeWork CEO Adam Neumann has arranged a $108 million loan from CIM Group for a Miami development, Commercial Observer (CO) reports, citing property records.
The published report says Mark Lapidus, WeWork’s former head of real estate, signed the mortgage document on behalf of the borrower, for the second phase of Caoba, a residential project in downtown Miami.
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 recently, as well as a Nashville apartment complex.
The 20,980-sq. ft. site at 697 N. Miami Ave. will be connected to Caoba’s first phase, a 444-unit structure built in 2019.
Neumann is under contract to buy a majority stake in Coaba’s first phase for approximately $200 million, The Wall Street Journal reported in January. Los Angeles-based CIM Group developed 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,” the published report says. “A representative for the company did not immediately respond to a request for comment.”
Caoba is part of Miami Worldcenter, spanning 27 acres.
Neumann collected hundreds of millions of dollars in his exit agreement from WeWork. Since then, CO says he has become a landord, purchasing residential rental complexes 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,” CO reported. “WeWork rarely owned the offices that it offered to consumers, opting instead to lease them.”
