On Friday, the flexible workspace operator Knotel was to be sold in an auction, but no other qualified bidders submitted an offer. This made Newmark the winner after it had already established a $70 million stalking-horse bid prior to the auction.
Newmark provided Knotel with nearly $20 million as debtor-in-possession financing.
However, the acquisition is still waiting to be approved by the U.S. Bankruptcy Court for the District of Delaware, which is hearing the sale on March 18.
Knotel filed for Chapter 11 bankruptcy earlier this year after months of struggling throughout the pandemic and facing numerous lawsuits by landlords claiming the company had stopped paying rent.