Equinox sues Paramount over fitness rival’s lease at 670 Broadway

Landlord signed a 28K sf lease with Bandier in March

New York /
Jun.June 26, 2018 05:20 PM
 

Albert Behler and 670 Broadway (Credit: Wikipedia)

Fitness studio operator Equinox is starting a turf war at 670 Broadway in Noho.

The company is suing Paramount Group for signing a deal with rival Bandier, claiming that the transaction violates a provision in its lease in the building. In a court filing, Equinox said that Paramount Group “unequivocally and expressly covenanted” that it would not rent out space in the building to other fitness clubs.

Equinox claims that the provision gave them enough incentive to invest in their location at 670 Broadway. Equinox, which pays $3.6 million in rent, signed a lease in 2015 and spent $9 million to renovate its portion of the building, according to court documents.

Bandier signed a 27,500-square-foot lease for a new U.S. flagship location in the building in March. Part of Bandier’s footprint in the property is the second floor, which has been earmarked as the future location of a Bandier-branded gym called Studio B. The deal now appears to be in danger of dissipating. Equinox is asking the judge to prohibit Paramount from performing any construction and repairs at the second floor space, saying that it “will suffer significant and irreparable injuries” if Bandier is allowed to move in.

“Had Equinox known that the Landlord would lease the floor directly above it for use by Studio B, it would not have entered into the Equinox lease nor agreed to pay the rents as provided in that lease, nor invested $9 million which is now at risk,” the complaint read.

Equinox also claims that there are safety concerns in their objection to the Bandier lease. Studio B classes, which have names such as “Army Full Body Boot Camp,” “Bootyful” and “Army Agility and Abs,” involve around 75 people jumping and running at the same time. This would put pressure on the building’s old wood joists, according to the complaint, thereby increasing the likelihood of property damage and personal injury.

Paramount bought the property, also known as 0 Bond Street, for $112 million in 2015. The building also contains a photojournalism gallery operated by camera brand Leica.

Aside from blocking Bandier from moving in, Equinox is also seeking at least $40 million in damages. Paramount Group declined to comment.


Related Articles

arrow_forward_ios
Mack Real Estate CEO Richard Mack and one of his new hotels at 51 Nassau Street. (Getty, ING)
Mack Real Estate takes over 7 distressed Manhattan hotels
Mack Real Estate takes over 7 distressed Manhattan hotels
1440 Broadway and CIM Group’s Shaul Kuba (Google Maps, Getty)
CIM closes on $400M refi for 1440 Broadway
CIM closes on $400M refi for 1440 Broadway
Theaters in some cities are opening with restrictions. (Getty, Photo Illustration by Alison Bushor for The Real Deal)
Coming attraction: Movie theaters reopen in New York, San Fran
Coming attraction: Movie theaters reopen in New York, San Fran
Innovo Property Group's Andrew Chung with 23-30 Borden Avenue in Long Island City (Google Maps)
Innovo lands $155M construction loan for LIC warehouse
Innovo lands $155M construction loan for LIC warehouse
Restaurants and bars accounted for a majority of the gains in February (iStock)
Leisure, hospitality big winners in February job gains
Leisure, hospitality big winners in February job gains
The company currently operates 761 stores, and intends to open 100 new stores this fiscal year. (iStock)
Retailer Burlington plans to double store count
Retailer Burlington plans to double store count
(Getty, Photo Illustration by The Real Deal)
Retail had its reckoning. Will subleases flood the market?
Retail had its reckoning. Will subleases flood the market?
Ascena owns Ann Taylor, Lane Bryant, Lou & Grey and Cacique. (Getty)
Ascena restructuring approved post-bankruptcy
Ascena restructuring approved post-bankruptcy
arrow_forward_ios

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

Loading...