On Monday WeWork revealed that it is assuming sixteen leases, as it approaches its upcoming May 30 court hearing — preparing for a chapter 11 exit the following day.
The newly announced lease assumptions, pending court approval, include locations within major North American markets including Los Angeles, New York, Chicago, Washington D.C. and Vancouver, and are located at:
- 33 Arch Street, Boston, MA 02110
- 222 South Riverside Plaza Suit 1500, Chicago, IL 60606
- 1150 South Olive Street, Los Angeles, CA 90015
- 2015 Main Street, Vancouver, BC V5T 3C2
- 3001 Bishop Drive 700 San Ramon, CA 94583
- 700 K Street Northwest Washington, D.C. 20001
- 729 North Washington Avenue Suite 600, Minneapolis, MN 55401
- 750 Lexington Avenue, New York, NY 10022
- 2755 Canyon 28, Boulder, CO 80302
- 1633 W Innovation Way Lehi, UT 84043
- Lightwell, 1100 Main Street Kansas City, MO 64105
- 1 South Dearborn St Chicago, IL 60603
- 750 N San Vicente Blvd Ste 800 West Los Angeles, CA
- (Summit II) 10885 NE 4thStreet Bellevue, WA 98004
- 1550 Wewatta St. Denver, CO 80202
- 501 Bolyston St., Boston, MA 02116
This development is part of WeWork’s long-term strategy to forge ahead with a more sustainable real estate portfolio post-bankruptcy. The company claims it has determined a path forward for over “90% of its global, wholly-owned lease portfolio,” resulting in a reduction of total future rent commitments by more than $8 billion (or by 40%).
Last week, WeWork announced it had finalized its lease portfolio in seven key U.S. markets: Columbus, Detroit, Las Vegas, Portland, Sacramento, San Jose, and Tampa. The company now boasts operating “over 24 million square feet of real estate across more than 330 locations in over 20 countries worldwide.”
The announcements regarding leases in key markets arrives shortly after WeWork revealed it had secured a “$450 million new-money financing facility” that will provide support “during its Chapter 11 cases and enable WeWork to promptly emerge from restructuring upon confirmation of the Plan.”
The deal, which must still be approved by WeWork’s Creditors, has Yardi Systems contributing $337 million through its affiliate Cupar Grimmond LLC. — which covers the majority of the coworking giant’s $450 million bankruptcy exit plan.
A final confirmation hearing is scheduled for May 30, and it will officially determine the final exit plan — potentially allowing WeWork to emerge from bankruptcy on its goal of May 31.
