Landlord wins suit over S.F. building with Trump stake
A judge has ruled in favor of landlord Vornado Realty Trust after it sued coworking firm Regus for terminating a lease at a major San Francisco office complex.
The proposed San Francisco Superior Court ruling on Wednesday said the termination was “null and void,” and the 2018 lease at 345 Montgomery St., which is worth $90 million over 15 years, remains in effect. Regus has until May 7 to appeal the ruling.
Former President Donald Trump owns 30% of the building, which is part of the former Bank of America headquarters and retail center. He was not involved in the lawsuit, according to court documents. The Montgomery Street building is next to 555 California St., the city’s fourthtallest building.
Judge Harold Kahn wrote that Regus terminated the lease in 2019 with the justification that the city rejected its plans to install exterior signs. But Kahn wrote that the city did not make a final
decision on the signs and that the Planning Department was moving to approve the signs. Vornado and other consultants were also still seeking to get the signs approved when the lease was terminated.
Former Planning Department Director John Rahaim, who was called as a witness during the trial, said that signs
The San Francisco Superior Court ruling said the termination was “null and void,” and the 2018 lease at 345 Montgomery St., which is worth $90 million over 15 years, remains in effect.
would have been approved at the building, the judge wrote.
A Planning Department spokeswoman told The Chronicle last year that the city had initially identified the building as a historic resource but later reversed that decision, allowing signs to be installed.
Vornado and IWG PLC, which owns the Regus brand, didn’t immediately respond to requests for comment.
The lawsuit predated the coronavirus pandemic, which has made the oncebooming coworking business more challenging. IWG said in January it was closing more than 100 unprofitable locations, the Financial Times reported.
IWG’s rival WeWork is shrinking its locations in the Bay Area and around the world.
The 555 California St. complex remains a top office location, with Goldman Sachs and Bank of America renewing their leases in the past year.
Vornado sought to sell or refinance the property last year, along with a New York tower partly owned by Trump, but the plans were scrapped.