In September, WeWork filed a lawsuit in D.C. Superior Court against one of its largest landlords, stating it refused to reimburse the coworking company for upwards of $13.6 million in build-out costs.
Now, WeWork is being accused of “actual or imminent” financial insolvency by Capitol Crossing I LLC, an affiliate of Property Group Partners.
The landlord is alleging that it provided WeWork with two reimbursements in August and October of 2019 that totaled $3.2 million.
Then, in May, WeWork representatives reportedly asked to change the terms of the lease at 200 Massachusetts Avenue to a profit-sharing agreement.
That’s when discussions broke down and WeWork’s legal team requested a non-disclosure agreement, which Capitol Crossing refused to carry out.
“Tenant’s actual or imminent insolvency and its inability to pay rent when due over the course of the Lease constitute breaches of the Lease and obliterates Landlord’s ability to recoup tenant improvement funds that otherwise would be provided by Landlord, as contemplated by the Lease,” wrote Seamus Curley, an attorney with Stroock & Stroock & Lavan LLP, representing Capitol Crossing response and counterclaim to WeWork’s lawsuit.
In June and July, WeWork once again made requests for reimbursements, which Property Group Partners refused to pay until the company disclosed more information about its solvency.
This is the second lawsuit WeWork has filed against another one of its biggest landlords in D.C., with the first being a $7 million suit against Anthem Row.
