Gap settles Midtown rent dispute with Axel Stawski

Retailer had owed $530K at billionaire developer’s 1212 Sixth Avenue

New York /
Feb.February 09, 2021 07:00 AM
The lawsuit between Gap and Alex Stawski was settled on Feb 2. (Google Maps, Getty)

The lawsuit between Gap and Alex Stawski was settled on February 2. (Google Maps, Getty)

 

Following a battle over unpaid rent at its Midtown Manhattan location, Gap has reached a settlement with the landlord.

The apparel brand had withheld $530,334 in charges — including water and snow removal fees — incurred by its 1212 Sixth Avenue store, according to a complaint filed in the Southern District of New York by the landlord, an LLC registered to under-the-radar real estate mogul Axel Stawski of Manhattan-based Stawski Partners.

In its response to the lawsuit, Gap used the “frustration of purpose” defense, saying the pandemic had made the lease untenable and forced it to lay off employees at the location.

As a result, Gap argued that it should receive a refund and that the lease be terminated or modified.

Instead, the case was settled Feb. 2, according to newly available court records. Terms were not released.

Neither attorneys for Gap nor the landlord responded to requests for comment.

Stawski was described by a 2016 Bloomberg News story as a billionaire developer who owns six Manhattan buildings, including the 30-story 565 Fifth Avenue. Stawski, a 70-year-old son of Holocaust survivors, is known for boutique, aesthetics-oriented commercial and residential buildings, according to the story.

Gap has also been involved in lawsuits with some of its other landlords, including Simon Property Group and Brookfield Property Partners.

The pandemic has triggered thousands of rent disputes between retailers and their landlords. Stores, many of which have been shut down for periods of time, typically argue that their leases are void.

However, few cases have been decided, leaving landlords and retailers to determine what to do in the meantime.





    Related Articles

    arrow_forward_ios
    270 W Montauk Hwy, Hampton Bays, NY (Loopnet)
    Legendary Hampton Bays bar up for sale
    Legendary Hampton Bays bar up for sale
    Ty Warner and Four Seasons 57 East 57th Street (Getty, Google Maps)
    Ty Warner’s Four Seasons Hotel sues tenant over $2.7M of missed rent
    Ty Warner’s Four Seasons Hotel sues tenant over $2.7M of missed rent
    CRE held up through the pandemic far better than most expected (iStock)
    How commercial real estate survived the pandemic
    How commercial real estate survived the pandemic
    Retail availabilities decreased, but leasing increased in the third quarter (iStock, Wikimedia, LoopNet)
    Manhattan retail market ticks up, indicating slow recovery
    Manhattan retail market ticks up, indicating slow recovery
    260 North Avenue East in Westfield NJ (Google Maps)
    Union County shopping center sells to Adoni Group for $19.2M
    Union County shopping center sells to Adoni Group for $19.2M
    Thor facing pre-foreclosure suit at 470 Broadway, sale of 115 Mercer
    Thor facing pre-foreclosure suit at 470 Broadway, sale of 115 Mercer
    Thor facing pre-foreclosure suit at 470 Broadway, sale of 115 Mercer
    Pandemic paralysis: Delta continues to impede hotel, restaurant recovery
    Pandemic paralysis: Delta continues to impede hotel, restaurant recovery
    Pandemic paralysis: Delta continues to impede hotel, restaurant recovery
    Downtown pols call for limits on permanent outdoor dining
    Downtown pols call for limits on permanent outdoor dining
    Downtown pols call for limits on permanent outdoor dining
    arrow_forward_ios

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

    Loading...