By Malathi Nayak : bloombergquint – excerpt
Read more at: https://www.bloombergquint.com/onweb/wework-accused-of-abandoning-san-francisco-development-project
Copyright © BloombergQuint
Bloomberg) — WeWork was accused in a lawsuit of reneging on a pledge to invest $450 million in a San Francisco development project that was supposed to showcase the WeLive communal living initiative.
Parkmerced Investors LLC sued the troubled co-working startup Thursday in New York state court, saying it abandoned a promise to help build WeWork-designed apartments and communal living space with media rooms, hot tubs and activities such as happy hours and yoga classes. Parkmerced Investors is seeking at least $100 million in damages.
The sprawling Parkmerced neighborhood, flanked by a lake and the San Francisco Golf Club, dates back to the 1940s and now offers high-rise apartments and town homes spread across 150 acres. Over the years, the complex has had backing from high-profile investors including the late real-estate billionaire Harry Helmsley and Fortress Investment Group.
The lawsuit comes after WeWork sued Parkmerced Investors in March in the same New York court, claiming it didn’t meet financing conditions for the deal and refused to return a $20 million exclusivity fee to complete the equity investment in the project…(more)
How stable is a project that relies on WeWork to succeed? The current tenants of the existing affordable garden apartments at Parkmerced are watching the corporate investors preparing to demolish their homes fight over millions, after they spent millions for the right to tear it down. The infamous State Supreme Court case overturned a ballot initiative voters fought for to protect the office housing balance that made the city a freedom loving comfortable highly popular cultural icon. Since that case was settled, San Francisco has been tuned into the golden goose that everyone wants a bite of. The city is being picked to the bone by greed and the corruption that it breeds. Hopefully the investors will eat each other and leave the residents in peace.