Lily Realty and Crunch gym reached a settlement last week that will result in the fitness franchise not occupying the commercial space at 140 Franklin Street in Tribeca.
The building’s board of managers filed a $5 million lawsuit in January to halt the pending lease agreement between Crunch and the landlord. The board claimed that the lease would violate the condo bylaws, condo declaration and city zoning laws. After the settlement, Lily Realty said it would not rent the space to Crunch, which sought to take 19,000 square feet on the ground floor and lower level.
Earlier this month, a judge rejected a preliminary injunction against the defendants, but said the board would likely win the lawsuit. In New York State Supreme Court, Judge Peter Moulton said yesterday that a “gym or health club is not compatible with the building’s certificate of occupancy,” as previously reported. [NYO] — Mark Maurer