Flex Workplace Provider In DC Area Eyes Expansion With New Investors

VIRGINIA/DC — Convene, a meeting, event and workspace provider with space in D.C. and Arlington, completed major investment deals with Hudson’s Bay Co. and a fund managed by the Private Equity Group of Ares Management Corporation, Convene announced Tuesday.

HBC is taking a majority stake in Convene in a deal valued at about $500 million, The Wall Street Journal reported Tuesday. As part of the deal, HBC also will combine its co-working business with Convene in the belief that furnished and flexible office spaces are the future of work.

Convene, headquartered in New York, will operate HBC’s existing portfolio of flexible work, event, restaurant and meeting spaces, which are currently branded as SaksWorks and may get rebranded as Convene. HBC will be the majority owner of the combined entity, with 26 facilities under management and dozens more under development.

With the investments from HBC and Ares, Convene said it will be able to focus on expansions in key urban and suburban markets.

Convene already has two spaces in the D.C. area: one on 14th Street in downtown D.C. and the other in the Rosslyn area of Arlington.

“We built Convene with a mission of elevating the workday experience. This strategic investment provides instant scale and growth opportunities for our business," Ryan Simonetti, co-founder and CEO of Convene, said in a statement Tuesday. "As organizations continue to embrace hybrid work and are demanding higher quality environments in which to gather, we are well-positioned to seize this moment.”

Founded in 2009, Convene began as a manager of meeting rooms, event space and catering for office buildings. It later added co-working spaces and virtual conferences.

As businesses are reimagining their office and workforce options due to the COVID-19 pandemic, commercial real estate landlords are also re-thinking what is required to stay competitive in today's marketplace. Amenities such as coworking options, on-site culinary offerings, meeting and event venues, and hybrid technology are becoming more popular, Convene said.