WeDone: South Beach landlord seeks to evict WeWork for unpaid rent

Embattled co-working giant allegedly owes $650K at South of Fifth location

WeWork at 429 Lenox Avenue
WeWork at 429 Lenox Avenue (Credit: HFF)

The landlord of a WeWork location in South Beach is looking to evict the embattled co-working giant for what it says is more than $650,000 in unpaid rent.

A photo obtained by The Real Deal shows the three-day notice tacked onto the door of the 43,500-square-foot building at 429 Lenox Avenue, which is fully occupied by WeWork.

WeWork notice

WeWork did not pay rent in April, May or June, according to the notice. WeWork began operating at the South of Fifth location in early 2016, and its triple-net lease runs until 2031. Two years ago, Goddard Investment Group, which owns the building, secured a $23 million floating-rate loan through Granite Point Mortgage Trust Inc., a publicly-traded mortgage real estate investment trust.

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WeWork has three business days from the date the notice was posted, on Thursday, to pay up, according to the notice, or it must leave the property.

In New York, the co-working company is shutting down its first-ever location as it overhauls its massive real estate portfolio following its failed IPO attempt last year.

Earlier this year, WeWork hired brokers at Newmark Knight Frank and JLL to negotiate concessions from landlords at struggling locations. If unsuccessful, some have speculated that WeWork could end up filing for bankruptcy. At its height, the company was valued at $47 billion.

In Miami-Dade, WeWork’s other locations include spots in Miami Beach at 350 Lincoln Road, downtown Miami, Brickell and Coral Gables.