• 0
  • Home
  • About Us
  • What We Do

Shopping Cart

GPAM
  • Home
  • About Us
  • What We Do

WeWork sued for backing out of San Francisco development deal

Maximus’ Robert Rosania and Former WeWork CEO Adam Neumann (Credit: Kevin Hagen/Getty Images; Ambrosetti)
Maximus’ Robert Rosania and Former WeWork CEO Adam Neumann (Credit: Kevin Hagen/Getty Images; Ambrosetti)

An investor in San Francisco’s largest residential complex is suing WeWork for abandoning its development plans and backing out of a pledge to invest $450 million.

The development at Parkmerced — which plaintiffs allege lost a year in closing additional investments, Bloomberg reported — was intended to showcase WeWork’s WeLive initiative, featuring amenities like media rooms, hot tubs, and offering happy hours and yoga classes. The plaintiff, Parkmerced Investors LLC, is seeking at least $100 million in damages.

The legal struggle is the second in as many months between the two parties. In March, WeWork sued Parkmerced’s developer, Maximus Real Estate Partners, for not returning a $20 million “exclusivity fee” as part of the botched development deal.

Adam Neumann, WeWork’s co-founder and former CEO, told Maximus Real Estate in 2015 that WeWork would one day “be bigger than Apple,” and he wanted in on the Parkmerced investment, according to Thursday’s court filings. In 2018, WeWork agreed to pay $275 million at closing and $175 millon six months later, but later backed out of the deal, Parkmerced Investors alleged.

The Parkmerced complex has also had its share of difficulty in recent months — the 3,000-unit apartment community, which is the largest multifamily property in San Francisco and the second largest multifamily property west of the Mississippi River, requested forbearance on its nearly $1 billion mortgage due to coronavirus-related financial hardship.

WeWork’s parent SoftBank has been in turmoil of late, but despite reporting record losses, doubled the compensation of its Vision Fund chief, Rajeev Misra. The conglomerate also moved two of the vision fund’s managing partners to senior advisory roles. [Bloomberg] — Georgia Kromrei

The post WeWork sued for backing out of San Francisco development deal appeared first on The Real Deal Los Angeles.

Powered by WPeMatico

  • 29 May 2020
  • The Real Deal
  • Uncategorized
  •  Like
Unibail-Rodamco’s 34-acre mixed-use Promenade project wins city planning approval →← CDC recommendations would drastically alter offices
  • Recent Posts

    • Mayor Karen Bass blasts everyone but herself for wildfire mishandling May 7, 2025
    • WEA, Beverly Hills Estates cut deal on $27M Malibu Colony home May 7, 2025
    • Oil firm eyes homes, hotel near Bolsa Chica wetlands in Huntington Beach May 7, 2025
    • Bankrupt Rite Aid to market 1.3K stores, including dozens in LA County May 7, 2025
    • Carolwood flexes with new LA pocket listings portal, boasting $1B+ in inventory May 7, 2025
  • Recent Comments

    • Archives

      • May 2025
      • April 2025
      • March 2025
      • February 2025
      • January 2025
      • December 2024
      • November 2024
      • October 2024
      • September 2024
      • August 2024
      • July 2024
      • June 2024
      • May 2024
      • April 2024
      • March 2024
      • February 2024
      • January 2024
      • December 2023
      • February 2023
      • January 2023
      • December 2022
      • November 2022
      • October 2022
      • September 2022
      • August 2022
      • July 2022
      • June 2022
      • May 2022
      • April 2022
      • March 2022
      • February 2022
      • January 2022
      • December 2021
      • November 2021
      • October 2021
      • September 2021
      • August 2021
      • July 2021
      • June 2021
      • May 2021
      • April 2021
      • March 2021
      • February 2021
      • January 2021
      • December 2020
      • November 2020
      • October 2020
      • September 2020
      • August 2020
      • July 2020
      • June 2020
      • May 2020
      • April 2020
      • March 2020
      • February 2020
      • January 2020
      • December 2019
      • November 2019
      • October 2019
      • September 2019
      • August 2019
      • July 2019
      • June 2019
      • May 2019
      • April 2019
      • March 2019
      • February 2019
      • January 2019
      • December 2018
      • November 2018
      • October 2018
      • September 2018
      • August 2018
      • July 2018
      • June 2018
      • May 2018
      • April 2018
      • March 2018
      • February 2018
      • January 2018
      • December 2017
    • Global Property and Asset Mangement, Inc.
      137 North Larchmont
      Los Angeles, California 90010
      +1 213-427-1127

    © 2025 GPAM