WeWork negotiates to keep Long Beach, South Coast Plaza locations

Landlords agree to reduce rents, extend term for bankrupt coworking firm

WeWork to Keep Long Beach, South Coast Plaza Locations
WeWork CEO David Tolley and CJ Segerstrom chief executive Greg Miller with WeWork's The Hubb in Long Beach (WeWork, Getty, LinkedIn)

WeWork has agreed to keep two more locations in Southern California — one in Long Beach and another at South Coast Plaza in Costa Mesa. 

The coworking firm, which is currently making its way through bankruptcy, has filed motions to keep its leases at 100 West Broadway, a building owned by Redwood Urban, and CJ Segerstrom’s Park Tower at South Coast Plaza, according to court records. 

WeWork leased two floors totaling 33,000 square feet at 100 West Broadway in 2016, according to reports at the time. When Redwood Urban bought the building for $60.5 million in 2018, one of the hooks was that WeWork held a long-term lease there. 

WeWork will pay $307,400 to keep its Long Beach lease, a maneuver known as a lease cure, court records show. Redwood Urban agreed to reduce its rent, extend WeWork’s term and require a reduced guaranty — cash that will go towards paying the landlord if WeWork defaults on the lease.

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At Park Tower, a 335,500-square-foot building at 695 Town Center Drive in Costa Mesa, WeWork leased about 38,000 square feet and opened its location in 2019, according to a marketing brochure for the space. 

At that location, WeWork has agreed to pay $383,000 to keep the lease and share some profits with landlord CJ Segerstrom, court records show. CJ Segerstrom, in return, agreed to reduce rent and WeWork’s guaranty on the lease. 

WeWork has been working to determine which leases across the country it wants to keep, and which it wants to shed. 

The firm recently rejected leases in Houston, Texas, and San Jose, according to bankruptcy records. 

Last month, WeWork said it came to an agreement to exit bankruptcy, thanks to $337 million in funding from Yardi Systems and $112 million from existing bondholders. The deal will allow WeWork to skirt being sold to its co-founder and former CEO Adam Neumann, who had emerged as a potential buyer.