Jay Suites to Knotel: Stay out of my house

Startups spar over 30 Broad lease

New York /
Aug.August 03, 2018 04:30 PM

Clockwise from top left: Jack and Juda Srour, 30 Broad Street, and Amol Sarva (Credit: HRO Group and Wikipedia)

When two flexible office companies sign leases in the same building, things can get messy.

Jay Suites plans to file an injunction to block its landlord at 30 Broad Street, Tribeca Associates, from bringing its rival Knotel into the property.

Jay Suites, the co-working company founded by brothers Jack and Juda Srour, has occupied the 14th floor of the 47-story office tower since 2011. Its lease prohibits the landlord from “leasing or subleasing of space in the Building to a person or entity in the Office Suite Business or business center rental business.” The company argues that Knotel, which it claims recently agreed to a deal for the 23rd floor in the building, fits that description.

In a letter sent to Tribeca Associates Thursday, Jay Suites demands that the landlord “must prevent Knotel from commencing, continuing and/or completing any build out in the Building, and from actually moving into the Building.”

Knotel declined to comment. Tribeca Associates, which bought the leasehold for 30 Broad Street from Gotham Realty Holdings for $130 million in 2016, did not respond to a request for comment.

As co-working companies spread across the city, more of them are bound to share a building. Earlier this week, for example, Knotel signed a management agreement for 45,000 square feet at the Sapir Organization’s 261 Madison Avenue, where WeWork is already a tenant. A source close to WeWork said its lease in that building does not include any restrictions blocking deals with other co-working companies, although these covenants are common across the industry.

In March, Jay Suites signed a 90,000-square-foot lease at 15 West 38th Street, next door to WeWork’s future headquarters.


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...