Lender Sues To Foreclose On WeWork's San Francisco Tower
Special servicer Torchlight Loan Services filed a foreclosure lawsuit against WeWork Capital Advisors and its joint venture partners after the company fell behind on a $240M loan attached to a 20-story tower at 600 California St. in downtown San Francisco.
Goldman Sachs Bank USA loaned WeWork Capital Advisors, or WeCap, $140M for the property in 2019 and Citi Real Estate Funding Inc., loaned another $100M, the San Francisco Business Times reported. Wells Fargo is the trustee for the loan.
Torchlight is managing the loan default process on behalf of Wells Fargo Bank.
The lawsuit asks the court to appoint a receiver for the property’s sale, and requests $250M including taxes, accrued interest and foreclosure costs.
WeWork leases 186K SF in the 359K SF property, but stopped paying rent in March, Bisnow previously reported. WeWork's lease runs through 2025.
WeCap was formed by WeWork and Rhone Group in 2019, but has struggled to reach its $2.9B investment goal, despite a $1B equity infusion from Ivanhoé Cambridge. The company had $886M in assets under management as of March.
WeCap defaulted on its loan in April, at which time the loan was transferred to the special servicer. The company is reportedly trying to negotiate the terms of the loan.
“We filed a lawsuit to pursue legal remedies, but we're hoping for a different kind of resolution,” Well Fargo attorney Ron Oliner told the Business Times.
WeWork declined to comment on the lawsuit.
