A bankrupt WeWork aims to retain its uptown offices in Century City
The New York-based co-working firm has filed a legal motion to assume its 87,000-square foot lease in Constellation Place at 10250 Constellation Boulevard, the Commercial Observer reported.
The move is part of a broader decision by the beleaguered company to continue operating in L.A., albeit on a much smaller scale.
The lease assumption, subject to court approval, is among seven assumptions requested by WeWork across the U.S. and Canada.
The filings follow a financial reorganization and landlord negotiations after its Chapter 11 bankruptcy filing in November.
Six years ago, WeWork was the highest-flying firm in real estate. Driven by charismatic CEO Adam Neumann, the firm spent the previous decade signing leases as fast as it could slap down papers. A year ago, the company announced a loss of $2.3 billion.
In Chapter 11, debtors such as WeWork can assume a lease when they wish to retain it. But before that is allowed, the firm must assure a judge that it will obey the lease terms and erase or cure any losses suffered by the landlord.
“With this new agreement, we’re excited to be continuing our operations at Constellation Place and solidifying our presence in Los Angeles,” Peter Greenspan, WeWork’s global head of real estate, said in a statement.
Last year, WeWork vacated 3 million square feet of offices worldwide.
Despite its assumption filings, the bankrupt firm has rejected 80 of its leases across the globe, including 92,000 square feet at the Gas Company Tower in Downtown L.A., plus more than a dozen other leases in Southern California.
The company has also had a hard time paying millions of dollars it owes in back rent, according to the Observer.
Meanwhile, at Constellation Place, WeWork has 87,000 square feet of offices on four floors for rent at the 35-story tower, according to a leasing brochure. Workspaces and meeting room bookings for the property are listed on the company’s website.
— Dana Bartholomew
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