Knotel is being sued by Manhattan real estate private equity firm Northwind Group over missed rent for its location on 40 Wooster Street.
The firm withdrew the flexible office company’s $206,250 deposit last May, but states that Knotel still owes $485,810 as of October.
The SoHo landlord claims that Knotel owes nearly $900,000 in unpaid rent, which includes six months of free rent that was part of its original lease agreement. Northwind said that if a tenant fails to uphold their end of a lease agreement, they lose the benefit of free rent.
“Knotel is always evaluating and adjusting our portfolio to best meet the needs of our customers, through Covid-19 and beyond, and we have reached positive resolutions with many owners,” said Mousa Ackallm, a Knotel spokesperson. “We take our landlord relationships very seriously, and will continue to actively engage with them to achieve good outcomes during these challenging times.”