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

Landlord signed a 28K sf lease with Bandier in March

TRD 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.


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