Landlord sues Bond New York founders for allegedly breaking Tribeca lease

Ricciotti and Freedman say claims that they "abandoned" 25 Hudson Street are meritless

New York /
Feb.February 08, 2016 04:15 PM

Bond New York founders Bruno Ricciotti and Noah Freedman, and an entity they used to sign a lease for their brokerage’s Tribeca office, are being sued by their landlord for allegedly breaking their lease.

The landlord at 25 Hudson Street, Benjamin Partners, is seeking damages in excess of $1.1 million. For their part, the Bond founders say the suit is without merit and that they were within their rights to terminate the lease.

In December 2006, Bond signed an 11-plus-year lease with Benjamin Partners to take a portion of 25 Hudson Street’s ground-level commercial condo, according to a complaint filed late January in New York State Supreme Court.

But the brokerage “breached its lease obligations” to Benjamin Partners, the landlord claims, and “abandoned the lease premises without justification” this past November despite its lease term running through April 2018, according to the suit.

Benjamin Partners, which owns commercial properties in Manhattan and Brooklyn, is seeking a minimum of $1.1 million in unpaid rent plus interest and late fees from the shell corporation Bond used to sign the lease, as well as a minimum of $86,000 plus legal fees from Ricciotti and Freedman personally – as the two men were personal guarantors on the lease, the suit claims.

In a statement, Bond said the brokerage “was perfectly within its rights in terminating its tenancy early in the ninth year of its lease.” Sources said the firm had a “good guy clause” on its lease, which would allow it an early exit provided the premises was vacated in good condition.

“Bond believes that the complaint is without merit,” the brokerage added, saying that it “expects to file an answer in the coming weeks.”

A spokesperson from Benjamin Partners declined to comment.

Bond’s monthly rent for the location jumped from nearly $21,700 in January 2013 to more than $25,100 by the time the company vacated the space in November 2015, per the suit. By the final year of the lease, the brokerage’s monthly rent would have risen to nearly $29,100 per month.

The lawsuit says the lease for Bond’s roughly 3,000-square-foot space was modified in 2010 through rent abatements and “accommodations” made by Benjamin Partners “in light of [Bond New York’s] economic troubles, at the time.”

Bond, which Ricciotti and Freedman founded in 2000 after working at Citi Habitats, is headquartered at 1776 Broadway in Midtown, with additional offices in Union Square, Chelsea and on the Upper East Side.


Related Articles

arrow_forward_ios
The Oppenheim Group's Jason Oppenheim (The Oppenheim Group, Getty)
Commission suits could spell “armageddon”: Jason Oppenheim
Commission suits could spell “armageddon”: Jason Oppenheim
Photo Illustration of Alex Sapir and Yanina Sapir (Getty, Google Maps, Facebook)
How real estate’s rich live: Alex Sapir’s wife seeks $175K/month in divorce
How real estate’s rich live: Alex Sapir’s wife seeks $175K/month in divorce
From left: Starwood Capital’s Barry Sternlicht and Veracity Development’s Edmond Li along with 111 Mercer Street (Getty, Google Maps, Veracity Development)
Sternlicht’s LNR aims to foreclose on Veracity’s Soho condo
Sternlicht’s LNR aims to foreclose on Veracity’s Soho condo
From left: Thor Equities' Joseph Sitt, Lightstone's David Lichtenstein and Mitchell Hochberg with Skybridge Towers (Skybridge Towers, Getty)
About case: Joe Sitt drops suit against Lightstone execs
About case: Joe Sitt drops suit against Lightstone execs
Hackensack mayor John Labrosse, 436 Main Street (Loopnet, Getty, City of Hackensack)
Hackensack Sears redevelopment is back on
Hackensack Sears redevelopment is back on
“If they want to try to suck our blood, make my day:” John Cats takes on venerable store
“If they want to try to suck our blood, make my day:” John Cats takes on venerable store
“If they want to try to suck our blood, make my day:” John Cats takes on venerable store
DW Partners David Warren and 427 Marcy Avenue (Getty, DW Partners, Google Maps)
Bizarre bankruptcy stops Brooklyn condo project foreclosure
Bizarre bankruptcy stops Brooklyn condo project foreclosure
Salim Assa with 15 West 55th Street
Troubled Midtown rental saga headed for a foreclosure finale
Troubled Midtown rental saga headed for a foreclosure finale
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...