Westfield hauls Starbucks into court in WTC mall dispute

Landlord claims coffee chain abandoned retail site

New York /
Aug.August 26, 2021 01:00 PM
World Trade Center Mall (Getty)

World Trade Center Mall (Getty)

Westfield executives’ morning coffee run is likely skipping Starbucks after the shopping mall operator filed a federal lawsuit against the coffee chain Tuesday.

The $5.2 million suit alleges that Starbucks tried to break its lease at the World Trade Center Mall seven years ahead of schedule, according to Crain’s. The lease has since been revoked by Westfield.

Westfield claims that Starbucks agreed to open in 2016 and operate throughout its lease, but remained shuttered when the mall reopened after a six-month pandemic shutdown.

Starbucks then tried to terminate the lease in March, claiming it could do so under the lease because its annual revenue fell below $2.5 million. Westfield contends the provision is only enforceable if the store is operating.

This is not the first dispute between Starbucks and Westfield at the World Trade Center Mall. In January, Starbucks was the party that sued, claiming its landlord has not prepared a separate space Starbucks agreed to operate within the mall back in 2012. No rent is being charged at that location and the case remains active in federal court.

This is also not the first abandonment dispute for Westfield at the mall. Three months ago, Westfield sued Victoria’s Secret for more than $32 million, claiming the retailer stopped paying rent and wrongfully abandoned its store. Victoria’s Secret claimed that it terminated the lease at the beginning of the year because co-tenancy requirements were not being met.

[Crain’s] — Holden Walter-Warner





    Related Articles

    arrow_forward_ios
    NJ construction official accused of siphoning funds from developers’ account
    NJ construction official accused of siphoning funds from developers’ account
    NJ construction official accused of siphoning funds from developers’ account
    NYC City Council passes bill forcing hotels to dish out severance pay
    NYC City Council passes bill forcing hotels to dish out severance pay
    NYC City Council passes bill forcing hotels to dish out severance pay
    Vorea, Domain and L+M close on $88M LIC development site
    Vorea, Domain and L+M close on $88M LIC development site
    Vorea, Domain and L+M close on $88M LIC development site
    Condor Hospitality CEO J. William Blackham and Blackstone CEO Stephen Schwarzman (Condor, Getty)
    Condor Hospitality selling hotels to Blackstone for $305M
    Condor Hospitality selling hotels to Blackstone for $305M
    Comptroller Scott Stringer (Getty)
    City landlords’ tax delinquencies approach Great Recession levels
    City landlords’ tax delinquencies approach Great Recession levels
    Valley National CEO Ira Robbins and Bank Leumi USA CEO Avner Mendelson (Getty, Valley National, Bank Leumi)
    Valley National acquiring Bank Leumi USA for $1.1B
    Valley National acquiring Bank Leumi USA for $1.1B
    Longfellow Real Estate Partners CEO Adam Sichol with renderings of 310 East 67th Street (Friends UES, Rendering by DBOX, Longfellow)
    Blood Center rezoning on Upper East Side approved
    Blood Center rezoning on Upper East Side approved
    39 Clarkson Street (Google Maps)
    Hudson Square office building sold for $46M
    Hudson Square office building sold for $46M
    arrow_forward_ios

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

    Loading...