MakeOffices Investors Oust CEO Raymond Rahbar, MRP's Zach Wade Takes Over
MRP Realty principal Zach Wade has taken over as CEO of MakeOffices, a DC-based co-working provider, amid a legal battle between MRP and EagleBank CEO Ron Paul against MakeOffices founder and longtime CEO Raymond Rahbar.
A Fairfax County Circuit Court judge ruled on April 24 that the MakeOffices board of directors, which included investors MRP and Paul, was within its rights to oust Rahbar from his leadership role, the Washington Business Journal reports.
Entities affiliated with MRP and Paul filed a lawsuit against Rahbar — naming his mother among the co-defendants — in January alleging improper management of the company. Rahbar has since filed a countersuit alleging MRP and Paul were involved in a fraudulent scheme to wrest control of the company from him. Both sides say the allegations against them are without merit.
The judge's decision stayed the litigation for 120 days and ordered the parties to come to an agreement through mediation. In the interim, Wade will serve as CEO and plans to restart the company's growth, which has stalled amid the principals' legal and financial disputes.
Rahbar founded the company in 2011 as UberOffices, later changing the name to avoid confusion with the popular ride-sharing company. He received investment from Paul and MRP and a loan and credit facility from EagleBank to help grow the startup.
The co-working provider opened its first location in Rosslyn in 2012 and has since expanded to six DC-area locations, three in Chicago and one in Philadelphia. MakeOffices is opening a 45K SF location at The Wharf later this year. MRP and MakeOffices jointly acquired a Logan Circle building in 2015, which opened in February as Logan Exchange, a co-working space managed by MRP.