A Newmark affiliate may have a hefty price to pay for allegedly abandoning office space in NoMad.
A&R Real Estate sued the commercial brokerage and its affiliate Digiatech for more than $2.3 million after the latter allegedly ditched a three-floor office lease at 105 Madison Avenue in October, according to a complaint filed Tuesday in Manhattan.
Digiatech was assigned the lease in early 2021 after it acquired Amol Sarva’s proptech startup Knotel out of bankruptcy for $70 million, according to the lawsuit. The ill-fated flex workspace provider had inked a 40,000-square-foot lease at the 20-floor office building in 2018.
While the lease does not expire until April of next year, Digiatech vacated the 232,000-square-foot property in October, according to the complaint. The three floors have not been re-rented since the tenant’s departure.
A&R accused Digiatech of breaching the lease, saying the Newmark arm has refused to pay more than $1.16 million in rent, damages and other charges. The landlord also accused Newmark of breaching its guarantor agreement, saying the brokerage has failed to pay any portion of Digiatech’s balance.
A&R is seeking $1.16 million apiece from Digiatech and Newmark, plus unpaid fees that come due under the agreements until a ruling is made. The landlord is also seeking at least $20,000 to cover its attorneys’ fees and expenses incurred from the action.
Both Digiatech and Newmark had yet to respond when reached for comment. Attorneys representing A&R also did not respond by press time.
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