Knotel is fighting for its survival as lawsuits mount –– RXR Realty is the most recent to bring them to court. The office landlord filed a suit against the co-working company for around $1.1 million in unpaid rent for space at 61 Broadway, Crain’s first reported. Knotel signed an 11-year lease with RXR at the FiDi property at the end of 2018 for space on the ninth, 10th, 17th, and 18th floors of the building.
- Dig Deeper: Knotel has failed to pay rent at the building from April through December, missing a total amount of about $2.75 million in payments. RXR has applied a roughly $1.6 million letter of credit from Knotel to these missing payments and is asking the state Supreme Court in Manhattan to award it the remaining $1.1 million plus interest.
- Backdrop: Knotel was already facing an escalating barrage of evictions, claims from unpaid vendors, and lawsuits seeking millions of dollars in back rent. The co-working company was already dealing with 22 lawsuits in New York State Supreme Court seeking over $10 million in damages. [Crain’s]