Even with Rent-Deferral Offer, Equinox Won’t Pay, Landlord Claims

Image Illustration of Paramount Group Chairman, CEO and President Albert Behler (Paramount, Equinox, Getty)

Paramount Team suggests its deal with Equinox is off.

Though other landlords throughout Manhattan have turned to the courtroom program to recoup lease the health chain allegedly skipped out on in the course of the pandemic, Paramount claimed in a lawsuit Friday that it was ready to work with its tenant — only to be spurned in return.

Paramount wants Equinox to shell out $1.57 million less than its first lease, which includes $1.3 million which Paramount was keen to defer right until 2022.

The haute health and fitness center agreed final September to fork out 50 percent its close to $138,000 base lease for 28,000 sq. feet at 1633 Broadway, in addition a percentage equal to any ability permitted below government Covid restrictions, in accordance to Paramount.

From December to Could, for case in point, when gym potential was limited to 33 percent, Equinox owed half its monthly rent furthermore an further 33 % of base, or about $114,000 for every month, under the conditions of the settlement.

In trade for partial payment, Paramount would defer all lease owed for the duration of periods of essential business closure until 2022. The remainder of rent because of from periods of partial payment would be deferred right until 90 times following all potential limitations were being eradicated, Paramount claims.

But just after Equinox allegedly unsuccessful to treatment a Might default observe, Paramount cancelled the agreement.

Landlords have accused Equinox of failing to pay back debts massive and small around the earlier 12 months.

Previous thirty day period, landlord Allied Companions sued the chain for $3.3 million in alleged arrears at its Soho locale. The landlord at the fitness chain’s 421 Hudson Avenue location in the West Village reportedly sued for more than $1.3 million in back rent in October, in accordance to Crain’s, when one more alleged the organization owed $1.7 million in back hire at its Fiscal District gymnasium.

Independently, a Murray Hill landlord sued the fitness center and one of its obvious workforce last week, alleging overdue rent on a household device costing about $3,000 for every month.

Equinox has extended been related with Connected Corporations, whose principals, together with chairman Stephen Ross and CEO Jeff Blau, keep possession stakes in the health chain. Blau criticized professional tenants for skipping rent previous calendar year, stating the pandemic “is not an excuse” for skipped payments. Related claims a portfolio of assets valued at above $60 billion.

Reps of Equinox and Paramount did not return requests for comment.

Gov. Andrew Cuomo lifted all potential limits for dining establishments, bars, fitness centers and suppliers on June 16, 2021.

Equinox will reportedly have to have evidence of vaccination from its patrons commencing in September.

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