WeWork Files to Keep Yet More Leases in SoCal, DC, Elsewhere
By Nick Trombola May 7, 2024 12:33 pm
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WeWork (WE) is back with plans to save more locations.
The troubled coworking giant has been on a serious roller coaster ride over the past several years, from thriving global powerhouse to bankruptcy and borderline collapse. But thanks to a recent injection of $450 million to support the company as it closes its Chapter 11 proceedings, WeWork has been securing agreements for its locations in major markets around North America.
On Monday, WeWork announced it had filed to assume 16 more of its leases across the U.S. and Canada, including two in Los Angeles: at the Cohen Brothers’ Pacific Design Center at 750 North San Vicente Boulevard in West Hollywood, and at LBA Realty’s 1150 South Olive Street in South Park.
It wasn’t immediately clear how much square footage the company maintains at the offices, though WeWork’s marketing materials suggest that it has three floors at both properties. The assumptions are subject to court approval.
Aside from the L.A. properties, WeWork also filed to keep its leases at 700 K Street NW in Washington, D.C.; 33 Arch Street and 501 Boylston Street in Boston; 222 South Riverside Plaza and One South Dearborn in Chicago; 3001 Bishop Drive in San Ramon, Calif.; 729 North Washington Avenue in Minneapolis; 750 North Lexington Avenue in New York City; the Triangle Building in Denver; the Canyon 28 building in Boulder, Colo.; the Innovation Pointe building in Lehi, Utah.; the Lightwell building in Kansas City, Mo.; the Summit II building in Bellevue, Wash.; and 2015 Main Street in Vancouver, British Columbia, Canada.
“WeWork is pleased to continue providing best-in-class spaces and services at the Pacific Design Center’s Red Building and 1150 South Olive Street,” a spokesperson for WeWork told Commercial Observer via email. “Los Angeles is a key market for WeWork, and these assumptions further strengthen our commitment to operating in the city.”
The filings come just a week after WeWork moved to assume nine other leases in the U.S. and Canada, including another two in L.A., at The Hubb in Long Beach and its two floors at Park Tower in Costa Mesa. It also filed to keep its lease at Constellation Place in L.A.’s Century City neighborhood in mid-March.
Most of the latest financing secured by the company, $337 million to be exact, is from real estate tech company Yardi Systems, with the rest from various company bondholders. The funding also comes with a restructuring deal aimed to help WeWork peel off $4 billion in debt obligations, which in turn would allow it to exit bankruptcy by the end of May.
Still, WeWork has gone through some serious downsizing to get where it is today. The company has jettisoned 80 of its global leases throughout its bankruptcy process, which it claims has helped it to avoid $8 billion in future rent payments.
Nick Trombola can be reached at ntrombola@commercialobserver.com.
