Manhattan landlords sue Knotel, Sprinklr for missing rent

Tenants together occupy more than 75 percent of 29 West 35th Street

New York /
Sep.September 22, 2020 09:45 AM
Knotel CEO Amol Sarva and Sprinklr CEO Ragy Thomas with 29 West 35th Street (Sarva via Sasha Maslov; Getty; Google Maps)

Knotel CEO Amol Sarva and Sprinklr CEO Ragy Thomas with 29 West 35th Street (Sarva via Sasha Maslov; Getty; Google Maps)

The landlords of a 95,000-square-foot office building near Herald Square filed lawsuits against two of their major tenants, alleging that they failed to pay rent for months.

United Group and American Equities, the owners of 29 West 35th Street, argue in court documents that flex-office startup Knotel and business software provider Sprinklr owe the landlords $536,000 and $283,000, respectively, for rent and legal fees.

Together, Knotel and Sprinklr occupy more than 75 percent of the office space in the 12-story building.

Knotel owes rent for April, May and June for its space on the second, third, fourth, 11th and 12th floors, according to the lawsuit.

Since the pandemic ravaged the office market, Knotel, which manages 2.5 million square feet in New York, has been slapped with multiple lawsuits by its landlords. The firm is trying to sublet some of its space to other tenants.

Knotel spokesperson Mousa Ackall said the company has reached positive resolutions with many landlords as it evaluates its portfolio to meet the needs of its customers.

“We take our landlord relationships very seriously, and will continue to actively engage with them to achieve good outcomes during these challenging times,” he said in a statement.

Sprinklr owes its landlords rent for May and June for its space on the fifth, seventh, eighth and ninth floors, the lawsuit alleges.

The company — which recently raised $200 million from a private-equity firm, according to the Wall Street Journal — and its attorney Jeffrey Zukerman did not return email messages seeking comment Monday.

The landlord entities are shell companies associated with Paul Sohayegh and Roni Movahedian, the sponsors of Empire State Equities. The firm, which bought the building for $30 million in 2007, tried to sell the property in 2017, according to Real Estate Alert. The landlords’ attorney, the law firm Baltzis Daigle, did not return email messages seeking comment.





    Related Articles

    arrow_forward_ios
    15 West 47th Street, 48 West 48th Street and 151 West 46th Street (Google Maps, Getty)
    Here’s what tenants are paying at ELO’s Diamond District properties
    Here’s what tenants are paying at ELO’s Diamond District properties
    Steve Witkoff and Ian Schrager in front of the iconic PUBLIC hotel escalators. (PUBLIC, Getty)
    EB-5 fund alleges Schrager, Witkoff siphoned money from Public Hotel
    EB-5 fund alleges Schrager, Witkoff siphoned money from Public Hotel
    Best Buy has closed about 20 of its big-box stores in each of the past two years (iStock)
    Best Buy lays off 5,000 staffers, increases store closures
    Best Buy lays off 5,000 staffers, increases store closures
    Ryan Serhant and Gary Barnett on Development Slowdown in Pandemic
    Coffee Talk: Extell’s Gary Barnett and Ryan Serhant
    Coffee Talk: Extell’s Gary Barnett and Ryan Serhant
    Cushman & Wakefield CEO Brett White
    Cushman reports 10% drop in revenue in 2020
    Cushman reports 10% drop in revenue in 2020
    Central Queens Academy's Ashish Kapadia and United's Chris Jiashu Xu with a rendering of 88-08 Justice Avenue (Linkedin, iStock)
    Charter school takes 85K sf in Queens condo building
    Charter school takes 85K sf in Queens condo building
    (IStock illustration by Kevin Rebong)
    Smaller cities look to cash in on shift to remote work
    Smaller cities look to cash in on shift to remote work
    421-427 East 14th Street (Google Maps, iStock)
    Stuy Town to get new 17K sf grocery store
    Stuy Town to get new 17K sf grocery store
    arrow_forward_ios

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

    Loading...