WeWork Reaches Deals To Keep 16 More Locations

As WeWork has finalized its bankruptcy exit plan, the company is tying a bow around its new, significantly smaller real estate portfolio. 

The embattled coworking provider has come to revised agreements at 16 more offices, assuming the leases and ensuring it will keep its locations for at least the near future. 

At many of the assumed locations, WeWork has reduced the size of its space and the rent it owes, according to a filing in bankruptcy court Monday. At some, it owes hundreds of thousands of dollars in cure payments. At one in Kansas City, Missouri, a management agreement will replace the lease.

In a statement, WeWork called the new terms mutually beneficial to the company and its landlords. The assumptions are subject to court approval.

At the end of last month, WeWork revealed that under its plan to exit bankruptcy, property management software provider Yardi Systems would become its majority owner. Yardi, along with other lenders, will inject the company with a total of $450M to emerge from proceedings. 

In the end, WeWork expects to exit bankruptcy with 337 global locations, including 178 offices across the U.S. and Canada, down from the 850 it once operated.

That means that WeWork has or will exit many locations, including some of its largest. Bisnow first reported that WeWork will close its Manhattan headquarters, which is home to 2,800 members, as well as that it plans to terminate its largest Boston location at the end of May.

Despite the closure at One Lincoln St. in the city's financial district, WeWork's most recent filing showed that it assumed two other Boston leases.

“Boston is a priority market for WeWork. With thousands of fast-growing startups and a thriving tech scene, we continue to believe in the immense value co-working and flexible office space can bring to local businesses,” WeWork Vice President of Global Real Estate Kate Harper said in a statement.

Both of its newly assumed Boston locations, at 501 Boylston St. and 33 Arch St., are owned by Nuveen. At 501 Boylston, WeWork is assuming the lease as is, while the other 15 leases were modified.

“Post-bankruptcy, we believe WeWork will be in a solid position to continue capturing demand for flexible work options and continue being an industry leader in building innovative and collaborative workspaces,” Nuveen Director of Workplace, Retail and Mixed-Use Dave Dyer said in a statement.

 The most expensive deal WeWork reached was at 750 Lexington Ave. in Manhattan, where it agreed to pay $1.1M to assume the lease with landlord Cohen Brothers Realty.

That deal includes a revenue-sharing agreement, reduced rent and a shortened lease term. WeWork occupies roughly a quarter of the 400K SF building, which had its value slashed by more than 80% earlier this year amid a decline in occupancy and revenue, The Real Deal reported.

All of the leases WeWork filed to assume follow below:

• 33 Arch St., Boston,

• 501 Boylston St., Boston  

• 222 S. Riverside Plaza, Chicago

• One S. Dearborn St. Chicago

• 1150 South Olive St., Los Angeles

• Pacific Design Center Red Building at 750 N. San Vicente Blvd., West Los Angeles

• 3001 Bishop Drive, San Ramon, California

• 2015 Main St., Vancouver, British Columbia

• 700 K St. NW, Washington, D.C.

• 729 N. Washington Ave., Minneapolis 

• 750 Lexington Ave., New York

• Canyon 28 at 2755 Canyon Blvd., Boulder, Colorado

• Triangle Building at 1550 Wewatta St., Denver

• Innovation Pointe at ​​1633 W Innovation Way Lehi, Utah

• Lightwell at 1100 Main St., Kansas City, Missouri

• Summit II at 10885 NE Fourth St., Bellevue, Washington