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WeWork is nearing the end of its prolonged bankruptcy proceedings, with court documents indicating agreement on many terms and a May 30th deadline for emerging from Chapter 11. As we discuss in today’s email, the company has secured significant interim and new financing, and plans to emerge with a sustainable lease portfolio. But, the specifics of which leases will be retained or discarded remain undisclosed.

A new mixed-use development is taking shape on the site of a once-popular Silicon Valley mall, creating over 2,600 housing units along with office, retail, and green spaces. In a new article, we detail the long journey of The Rise project, from its lengthy approval process to its anticipated significant impact on the small city of Cupertino.

Join us this Thursday, May 30, 2024, at 1:00 PM ET for a Propmodo Live webinar discussion on adapting office leasing strategies. Industry experts from CoStar, JLL, Cohesion, and Propmodo will share insights on hybrid work, high interest rates, shrinking workspaces, innovative office design, and effective lease negotiations. Don't miss out—register now!

This week in Propmodo Technology, we dive into construction management, exploring how jobsite tech is enhancing safety and efficiency despite industry resistance. We'll discuss how savvy developers are leveraging data as their key strategic asset and examine five ways technology is revolutionizing construction efficiency and sustainability.

Now, let's dig in!

Court Documents Reveal More Detail About WeWork Bankruptcy

It seems that WeWork is close to ending its seemingly never-ending bankruptcy proceedings. Public court documents have shown that many of the terms of the bankruptcy have been agreed upon, and the company is on track to meet its May 30th deadline. One of the documents explains the company’s improved financial outlook:

“The Debtors have received $50 million of interim financing and are poised to receive approximately $400 million in new money financing; are taking all steps necessary to confirm the Plan on May 30, 2024, as scheduled; and are on track to emerge from chapter 11 with a profitable and sustainable lease portfolio after having filed papers.”

One document includes some of the proposed changes to the bankruptcy agreement, including the removal of the price at which a debtor would be able to convert their debt into equity of the company: “The New Money Equity Distribution shall be allocated as specified in the DIP New Money Exit Facility Documents and this Plan at a conversion price of $10.00.”

Another document outlines all of the parties that have been served notice of the new agreement, including a long list of property companies, the attorney generals of 23 states (including American Samoa), and the United States Attorney’s Office.

What is still missing is a full account of exactly which leases WeWork will be keeping and which they will be getting out of. That information will be available as the bankruptcy comes to a close, which should be in about a week’s time. WeWork will have a lot of work to do to climb back to anywhere near where it was when it went public, but for now, it looks like it will remain a company even after this drawn-out bankruptcy and all the drama it has produced.

Groundbreaking

Insider Insights

🧺 Dirty laundry: A recent report has flagged $2.6 billion dollars in real estate transactions that could have been used as a way to launder money that was made from illegal activity.

🫴 Dollar short: A California program designed to provide decarbonization funding for underserved communities has had almost half of its funding cut as the Governor trims the budget.

Overheard

Propmodo Technology: Construction Management

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Propmodo Daily is written and edited by Franco Faraudo with contributions from readers like you and the Propmodo team.

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