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
Napa Valley hot-air-balloon business lists for $12M
Napa Valley hot-air-balloon business lists for $12M
Napa Valley hot-air-balloon business lists for $12M
A photo illustration of the proposed Lower Platte River Corridor (Getty, Plan Preserve Play NE)
Nebraska lawmakers mull digging $1B recreation lake
Nebraska lawmakers mull digging $1B recreation lake
Illustration of Stefan Soloviev (HaydenSoloviev, CC BY-SA 4.0, via Wikimedia Commons, Getty)
Soloviev bets long-dormant Midtown East site in casino sweepstakes
Soloviev bets long-dormant Midtown East site in casino sweepstakes
CHIP's Jay Martin and HCR Commissioner RuthAnne Visnauskas (Getty)
Lies, damn lies, and statistics: Did rent-stabilized vacancies really fall?
Lies, damn lies, and statistics: Did rent-stabilized vacancies really fall?
PulteGroup's Ryan R. Marshall and RedFin's Glenn Kelman (PulteGroup, RedFin, Getty)
Wall Street is bidding up housing stocks again
Wall Street is bidding up housing stocks again
Empire Capital Holdings' Josh Rahmani, Hakimian Capital's Michael Hakimian, RXR's Scott Rechler and 1330 6th Avenue (Getty, Hakimian Capital, Empire Capital Holdings, 1330aofa.com)
Empire Capital, partners close on $320M deal for 1330 Sixth Ave
Empire Capital, partners close on $320M deal for 1330 Sixth Ave
Urban Commons' Salvatore G. Takoushian with Wagner at the Battery
Urban Commons puts FiDi hotel into bankruptcy
Urban Commons puts FiDi hotel into bankruptcy
(Illustration by The Real Deal; Getty)
Multifamily faces stricter emission caps
Multifamily faces stricter emission caps
arrow_forward_ios

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

Loading...