WeWork’s Lincoln Road landlord seeks $20M in unpaid rent

WeWork told its members last week it was closing its 40K sf Lincoln Road space

WeWork Lincoln Road with Sandeep Mathrani (Google Maps, WeWork)
WeWork Lincoln Road with Sandeep Mathrani (Google Maps, WeWork)

WeWork’s landlord on Lincoln Road is suing the co-working giant, alleging it failed to pay rent in April, May and June while still occupying the space.

SML 350 Lincoln Inc. sued WeWork in Miami-Dade Circuit Court in late July, alleging the company breached its commercial lease by failing to pay rent. The landlord, led by Shaul Levy and Meir Levy, is seeking more than $19.5 million in unpaid rent, attorney’s fees and more.

A WeWork spokesperson said in a statement that “the lawsuit lacks merit for a variety of reasons,” and that it continues to work with its landlords to meet its obligations and “reach mutually beneficial solutions.”

WeWork announced to its members last week that it would be closing the 40,000-square-foot space at 350 Lincoln Road, and would make the nearby location at 429 Lenox Avenue its flagship Miami Beach space. Last month, WeWork’s landlord on Lenox Avenue posted a three-day notice saying it was intending to sue WeWork for unpaid rent in April, May and June to the tune of more than $650,000.

WeWork and its Lenox Avenue landlord, Goddard Investment Group, appear to have worked it out. A source confirmed to The Real Deal that they finalized their agreement on Monday.

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The Lincoln Road location is set to close Aug. 14, but WeWork is still on the hook for the lease, which extends to October 2030, according to the lawsuit. The 16-year lease was signed Nov. 1, 2014, and WeWork opened the following year.

WeWork has been working on shrinking its portfolio around the world, following its failed IPO attempt last year, and further propelled by the effects of the coronavirus pandemic.

The SoftBank-backed company, now led by CEO Sandeep Mathrani, has a number of locations in the Miami area. It was previously announced as the anchor tenant of a new Class A office tower under construction in Brickell, where construction workers were seriously injured on Wednesday.

In addition to the two locations in Miami Beach, WeWork has locations in downtown Miami, Brickell and Coral Gables.

Write to Katherine Kallergis at kk@therealdeal.com