In its latest retreat, the once-high-flying co-working firm WeWork has dropped some of its space at an office building in the Arts District owned by Hudson Pacific Properties.
Plant-based milk manufacturer Califia Farms signed a long-term lease for 29,440 square feet at The Maxwell at 1019 E. 4th Place, according to an announcement on Wednesday. Newmark’s Craig Kish represented Califia Farms. CBRE is listed as the broker for The Maxwell development.
In 2019, WeWork signed a deal to occupy the entire building at 1019 E. 4th Place and an adjacent parking and office building at 1003 E. 4th Place — a total of 102,963 square feet of office space.
The oat and almond milk maker will take over two floors at 1019 E. 4th. Califia was previously around the corner at 1321 Palmetto St., an office building owned by nonprofit The Fond Land Preservation Foundation.
Hudson Pacific bought the two buildings that make up The Maxwell for $40 million in 2015, records show. The firm then completed renovations on the properties in 2019.
Just last year, WeWork held all five of 1019 E. 4th’s floors, according to a brochure for the space. The co-working company did not immediately respond to a request for comment.
This isn’t the first building in Los Angeles that WeWork has recently exited. In March, the firm canceled its long-term lease at a Hollywood office building owned by CIM Group.
In June 2020, WeWork CEO Sandeep Mathrani said the company was rethinking one in five of its leases, but continued to try and fill millions of square feet of empty office space across L.A. and New York City. It then shut down four locations in Manhattan.
In the second quarter of this year, WeWork said 53% of its entire portfolio was occupied. The firm is still planning to go public through a special-purpose acquisition company, in a deal valuing the company at $9 billion including debt.
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