WeBankrupt: Crumbling co-working firm goes bust; billionaire Dezer highlights Miami market ... and more

The best national real estate stories from The Real Deal. Nov 11, 2023 [View in Browser]( | [$1 for 1 Month]( [The Real Deal Logo](   [The National Logo](   In today’s newsletter, we look at [WeWork’s demise](, and the impact that will have on its office leases across the country. Plus, Tides Equities [falls behind on another massive chunk of debt](, Freddie Mac [investigates one of the nation’s largest commercial mortgage brokers](, and some of the [biggest names in real estate]( took the stage at TRD’s Miami Forum. These and more stories below.   [WeBankrupt: Crumbling co-working firm goes bust]( WeWork's recent bankruptcy filing marks the start of a dark chapter in the company's tumultuous history. Once valued at a staggering $47 billion, the co-working giant's downfall has been characterized by financial mismanagement, questionable dealings by its former CEO Adam Neumann, and a flawed business model that ultimately led to insolvency. As WeWork files for Chapter 11 protection, it is seeking to shed dozens of leases across the US and Canada, highlighting the magnitude of its financial challenges. New York, where WeWork established its strongest presence, will [bear the brunt of the fallout](. The firm is looking to ditch at least 35 New York leases. The majority of those are at buildings owned by mid-sized or institutional landlords, including Kushner and RFR’s Dumbo office building, and Vanbarton’s Midtown tower. But, New York won’t be the only market to take a hit. In the Bay Area, WeWork’s second major hub, the company is [looking to break seven leases](, or about 440,000 square feet of offices in San Francisco and Oakland. [Los Angeles didn’t fare much better](. WeWork is canceling six leases in the area. South Florida [emerged as something of an outlier](, as the company is not seeking to cancel any of its five offices in the region. Meanwhile, in Chicago, the firm is being [sued by its landlord at a LaSalle Street office](. The landlord, a company owned by Jaime “Jay” Javors, is looking to evict WeWork as the firm owes $300,000 of back rent. The building, which is at the center of another unrelated legal drama, will be completely empty if WeWork vacates, though the firm didn’t share plans to break the lease. Like Javors, many of WeWork’s landlords were already facing low occupancy before the firm’s demise. Thanks to the bankruptcy, WeWork may be off the hook for those leases, including unpaid back rent. The trouble could be the nail in the coffin for landlords — Kushner and RFR have already defaulted on their New York office complex where WeWork was a tenant. As for WeWork itself, its future hangs in the balance. But, it has one unexpected supporter: ousted co-founder Adam Neumann. “I believe that, with the right strategy and team, a reorganization will enable WeWork to emerge successfully,” he said in a statement.   Advertisement   [I'm an image]( [“Everybody is Coming Down”: Gil Dezer Highlights Miami’s Booming Market at TRD Forum]( TRD’s Miami Forum brought together some of the biggest names in real estate, including developers Gil Dezer, Michael Shvo and Isaac Toledano. The trio [talked about the strength of Miami’s market](, as signified by soaring unit prices, rising office asking rents and foreign institutional investments. The event saw plenty of other major industry players, too. Some of [the region’s top residential brokers](, including Fredrik Eklund, discussed the luxury industry and the battle over broker commissions. Reality star Marcus Lemonis explained [why real estate is “the single greatest asset to create generational wealth](.” And billionaire Teddy Sagi discussed [his big bets on developments]( on Fisher Island, in West Palm Beach and North Miami. [I'm an image]( [Ralph Herzka’s Meridian Capital Under Freddie Mac Investigation]( Meridian Capital Group, one of the nation’s largest commercial mortgage brokerages, is under investigation by Freddie Mac over a deal between the two. Along with the investigation, Meridian is temporarily banned from brokering for Freddie Mac lenders. In a strange twist, Meridian’s executive chairman [David Brickman resigned this week]( in an effort to distance himself from the firm. Brickman’s previous role? CEO of Freddie Mac. [I'm an image]( [Tides Equities Late on $150M in Debt After Earlier Workouts]( Barely a month ago, Tides Equities’ executives preached the firm’s strength, claiming it was working out all of its troubled debt to its multifamily portfolio. But, in the weeks since, the firm has fallen behind on another $150 million in debt.   Advertisement   [I'm an image]( [Brand Studio The Mondrian Lifestyle Comes to Tulum]( [I'm an image]( [Antitrust Lawsuits Over Broker Commissions Pile Up in Time for Earnings Season]( [Compass](, [Redfin](, [Douglas Elliman](, and [OpenDoor]( all had earnings calls within recent weeks. The potential impact of antitrust lawsuits is top of mind for all. [I'm an image]( [Magellan Being Undercut by Residents at St. Regis Looking to Sell]( Developer Magellan is looking to offload 20 condos at its Chicago St. Regis property. But, its listings have been undercut by current residents looking to get out of the building. [I'm an image]( [New York Rent Prices Decline for Two Months Straight]( After months of rampant growth, New York’s rents have turned around, dipping for two straight months. Rents in September were up just 4.6 percent from the previous year, a far cry from the 20 to 30 percent annual increases of yesteryear. [I'm an image]( [Brand Studio Miles Nadal on Thriving in Real Estate Through Partnership and Adaptability]( [I'm an image]( [The Agency Snags Three Bay Area Compass Teams]( The Agency is looking to expand its presence in the Bay Area, and it’s acquiring three Compass teams as part of that push. The acquisitions target teams that serve luxury clients in some of the nation’s priciest zip codes. [I'm an image]( [Developers Stake $270M on South Austin as Next Hotspot]( A group of property owners in the South Austin Entertainment District are looking to turn the neighborhood into the city’s go-to spot for nightlife. The group is looking to invest $270 million into building a mixed-use district to rival that of Rainey Street and 6th Street, the city’s current nightlife hubs.     [The Real Deal Logo]( [Facebook]( [Twitter]( [Instagram]( [LinkedIn]( [YouTube]( [Manage Newsletters]( | [Unsubscribe]( | [Privacy Policy]( | [Subscribe]( | [Advertise]( The Real Deal 450 West 31st Street, New York, NY 10001 ©2023 TheRealDeal. All rights reserved. [View Online](