Y&H Realty Hits Amol Sarva With Suit Over Knotel Missing Rent at 116 West Houston
Even bankruptcy won’t stop landlords coming after Knotel for missed rent.
Y&H Realty Corporation filed a lawsuit in Manhattan Supreme Court on Tuesday against Knotel co-founder and CEO Amol Sarva to get back $644,443 in rent from Knotel at its 116 West Houston Street location, court records show.
Knotel took the second, third, fifth and sixth floors of 116 West Houston in 2016, with Sarva signing a personal guarantee as part of the lease, according to the lawsuit. However, like many other locations around the city, Knotel stopped paying rent at 116 West Houston once the coronavirus pandemic hit.
The flexible workspace provider stopped paying rent at the spot in March, drawing down its security deposit in the process. In January, a day before Knotel filed for bankruptcy, Knotel told Y&H it was terminating the lease, court records show.
Because of Knotel’s bankruptcy, Y&H is trying to recoup the $644,443 in rent from Sarva himself under the terms of the guaranty agreement.
A spokesperson for Knotel and Y&H’s lawyer, David Yahner, did not immediately respond to requests for comment.
Knotel has been hit with a slew of lawsuits from landlords all over the city trying to get rent from the firm, and it filed for bankruptcy on Jan. 31 with plans to close U.S. locations as part of its restructuring. Brokerage Newmark stepped in with $20 million in financing to Knotel and made a $70 million stalking-horse bid to acquire the company.
The bankruptcy auction process was canceled last week after no other bidders stepped up, and a hearing is set for Thursday for a Delaware court to approve the sale to Newmark.