UPDATED, Aug. 3, 4:55 p.m.: WeWork is leaving Lincoln Road after allegedly owing more than $650,000 in unpaid rent at Lenox Avenue, and is consolidating its two Miami Beach locations into one, The Real Deal has learned.
The embattled coworking giant notified its members at 350 Lincoln Road in Miami Beach that it was closing the space effective Aug. 14, according to a letter obtained by TRD. Members were offered a move to 429 Lenox Avenue in Miami Beach, which WeWork is now calling its flagship Miami Beach location, or downtown Miami at the Southeast Financial Center at 200 South Biscayne Boulevard.
WeWork opened its Lincoln Road location – on four floors totaling 40,000 square feet – in 2015. A company controlled by Shaul Levy and Meir Levy owns the building.
The announcement comes as WeWork looks to shrink its portfolio around the world amid the coronavirus pandemic. The move follows WeWork’s failed IPO attempt last year.
A month ago, WeWork’s landlord at 429 Lenox Avenue posted a three-day notice to the front door of the building, allegedly seeking more than $650,000 in unpaid rent.
On July 13, WeWork and Robert Goddard’s Goddard Investment Group, the landlord at 429 Lenox Avenue, sent a letter to members. It said the landlord and tenant were working together “in good faith” and were confident a resolution would be finalized in the coming days. WeWork is the sole tenant of the 43,500-square-foot building.
WeWork and Goddard Investment Group finalized their agreement on Monday, according to a source.
Meanwhile, members of WeWork on Lincoln Road were stunned by the closure notice.
Jay Rodgers, of Stryder Eyewear, a member at 350 Lincoln Road, wrote that several members are “scrambling for a new place” and that WeWork is not paying to relocate its members or reprint marketing materials. Rodgers called it an “awful experience.”
WeWork declined to comment. In the letter sent to members of 350 Lincoln Road, WeWork said it would work with them to move to “another WeWork location for no additional membership or relocation cost.”
The company has locations in downtown Miami, Brickell and Coral Gables.
In New York, the co-working firm decided to shut down its first-ever location on Grand Street. It recently hired JLL and CBRE to help fill millions of square feet now vacant, in New York City and Los Angeles, and has been shopping for brokerages to help lease spaces in major markets, including Miami.
Write to Katherine Kallergis at [email protected]