Stephen Ross’ Related is adding to a furnished-apartment provider’s landlord troubles, seeking millions in arrears.
Related Companies alleged in a complaint filed last week it’s owed more than $2 million by Manhattan-based Furnished Quarters, Crain’s reported. The landlord claimed Furnished Quarters is in rent arrears at six New York City buildings, as well as two in San Francisco and one in Boston.
Related claimed Furnished Quarters stopped paying rent for a number of units beginning in March 2020. The landlord said emails from Furnished Quarters revealed “significant liabilities incurred during the Covid-19 pandemic and limited cash.”
Neither company commented to the outlet about the complaint.
The complaint comes more than a year after at least four landlords sued Furnished Quarters for $1.75 million, alleging rental arrears. AFIAA filed a lawsuit for more than $1 million, claiming the company stopped paying rent at its Chelsea headquarters in March 2020.
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It’s not clear if the lawsuits were resolved or if Furnished Quarters was removed from any of the spaces where it was being sued.
Founded by Gary and Steven Brown, Furnished Quarters is a short-term rental company geared towards corporate travelers looking for furnished apartments. The company can be seen as a competitor to the hotel industry, but also to the likes of Airbnb and VRBO.
Importantly, Related is also about to be a direct competitor to Furnished Quarters as it makes its own bet on top executives splitting time between remote work and the office.
Related is set to launch The Set, a rental apartment brand that will provide a luxury experience for executives. The first location is scheduled to open at 455 10th Avenue in Hudson Yards this fall. The 270-unit rental will include furnished units, amenities and concierges.
Yearly leases are expected to start at $5,200 per month for studios and $7,200 per month for one-bedroom apartments.
Related CEO Jeff Blau hopes to take the concept national with outposts potentially eyed in Miami, Los Angeles, Chicago, and Austin.
— Holden Walter-Warner