Vacant Former WeWork Property Sees Valuation Double to $33M

A vacant Greenwich Village property formerly fully occupied by WeWork is beating the valuation odds. 

Winter Properties’ 11-story 57 East 11th Street reported a new appraisal of $32.9 million compared to $16.4 million in June 2025, according to an alert posted by Morningstar Credit Thursday morning. The value doubling for the 61,375-square-foot building marks a turnaround for the former WeWork-leased asset near Union Square two years after the coworking giant abandoned its long-term lease as part of bankruptcy proceedings. 

David Putro, associate managing director at Morningstar, said valuation bumps like 57 East 11th are rare for distressed properties, yet there have been some signs of other office properties also seeing increases. He noted that the value of Times Square’s 1500 Broadway has gone up 16 percent since a 2024 appraisal, and that strong demand of late in Manhattan office’s market may be a factor in both upticks. 

“It could be a residual effect,” Putro said. “With the surge in Class A office space, some tenants likely get priced out, so there could be a little pickup on lesser space.”

While 57 East 11th is seeing a valuation uptick, the $32.9 million appraisal remains far below the $92 million recorded in 2019 when a $55 million commercial mortgage-backed securities (CMBS) refinancing was issued for the property by Citigroup. WeWork leased the entire property in 2018 five years before filing for bankruptcy. 

Shortly after WeWork’s bankruptcy, Winter Properties defaulted on the CMBS loan, which hit special servicing in March 2024. 

Winter Properties acquired 57 East 11th in March 2014 for $22.5 million and planned to redevelop it into an office building geared toward technology, media and advertising companies, David S. Winter, co-founder of the real estate investment firm, told the New York Times in 2015. 

Winter Properties did not immediately return a request for comment.

Andrew Coen can be reached at acoen@commercialobserver.com.