WeWork’s bankruptcy filing has more trouble in store for already struggling New York City office owners as it seeks to immediately ditch a slew of spaces.
Kushner and RFR’s Dumbo office building, Vanbarton’s Midtown tower at 980 Sixth Avenue and a handful of locations owned by smaller landlords are among the 40 leases the co-working firm moved to reject as part of its restructuring in bankruptcy court.
A number of the leases are around in or near Manhattan’s Garment District, an area home to many older Class B office buildings and among the hardest hit by pandemic-era work policies.
WeWork also plans to cut leases in Downtown Manhattan and Northern Brooklyn. Among the properties named in the filing are Kushner and RFR’s 81 Prospect Street in Dumbo, where WeWork was the second largest tenant.
Vanbarton refinanced 980 Sixth Avenue, known as the Hollingsworth, for $240 million in March 2020, the month that pandemic shutdowns began. WeWork reportedly leased 75,000 square feet at the tower, which has 380 luxury apartments and a retail component.
The proposed rejected leases are in buildings owned by mid-sized and institutional landlords.
WeWork has already moved out and closed its operations where it is seeking to ditch its lease.
“The debtors’ lease portfolio has been, and continues to be, a significant contributing factor to their current financial challenge,” the company said in a filing in bankruptcy court. “Rejecting the leases will help ease the debtors’ cash burn and increase the debtors’ liquidity.”
The company, working with real estate advisor Hilco, is in active negotiations with 400 landlords to rework its leases in markets across the country.
| Property Address | Landlord |
|---|---|
| 1 Little W 12th St New York, NY 10014 | Bobby Cayre – Aurora |
| 1 Union Square West New York, NY 10003 | Lori Buchbinder – Buchbinder & Warren (management company) |
| 10 East 38th Street New York, NY 10016 | XSuresh Sani, First Pioneer Realty |
| l0 East 40th Street New York, NY 10016 | Attorney Larry Wohl |
| 1156 6th Avenue New York, NY 10036 | APF Properties |
| 130 Madison Avenue New York, NY 10016 | Walter & Samuels |
| 161 Avenue of the Americas New York, NY 10013 | Stellar Management |
| 1619 Broadway 11th Floor New York, NY 10019 | Mack Real Estate Group |
| 183 Madison Avenue New York, NY 10016 | APF Properties |
| 200 Broadway New York, NY 10038 | Westfield |
| 205 Hudson St New York, NY 10013 | Trinity Wall Street |
| 22 Cortlandt Street New York, NY 10007 | Moshe Drizin |
| 229 West 36th Street 4th floor New York, NY 10018 | Investcorp |
| 255 Greenwich Street New York, NY 10007 | Jack Resnick and Sons |
| 261 Madison Ave New York, NY 10016 | Sapir |
| 28 West 44th Street New York, NY 10036 | APF Proerties |
| 311 W 43rd St. New York, NY 10036 | Divco |
| 315 W 36th Street New York, NY 10017 | Walter & Samuels |
| 38 West 21st Street New York, NY 10010 | Jack Vogel Associates |
| 419 Park Avenue South New York, NY 10016 | Walter & Samuels |
| 437 5th Avenue New York, NY 10016 | Joseph P Daly Real Estate – Larry Wohl |
| 437 Madison Avenue New York, NY 10022 | William Kaufman Org. |
| 44 Wall Street New York, NY 10005 | Gaedeke Group |
| 483 Broadway New York, NY 10013 | The Cayre Group |
| 500 5th Avenue New York, NY 10110 | Moises Cosio |
| 505 Park Avenue New York, NY 10011 | Yeung Yin Chi – Glorius Sun |
| 511 West 25th Street New York, NY 10011 | Artemis Real Estate Properties |
| 54 W 40th St New York, NY 10018 | Allied Partners |
| 599 Broadway New York, NY 10011 | Prima Capital Advisors |
| 6 East 32nd Street New York, NY 10016 | Himmel & Meringoff |
| 7 West 18th Street New York, NY 10011 | ASB Capital Management |
| 8 West 40th Street New York, NY 10018 | Jack Resnick & Sons |
| 81 Prospect Street Brooklyn, NY 11201 | RFR & Kushner Companies |
| 980 6th Avenue New York, NY 10018 | Vanbarton Group |
| 77 Sands St Brooklyn, NY 11201 | RFR Kushner |
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