New Tenant Takes Space After Bankrupt Retailer Departs In Coordinated Deal
Experts in the Stroock real estate group believe we’ll see additional deals like this as more companies restructure or seek bankruptcy protection due to COVID-related closures.
Boutique cycling chain CycleBar has taken space at 51 Astor Place in Manhattan in a deal that saw law firm Stroock representing both landlord Edward J. Minskoff Equities in the lease transaction and in prior tenant Flywheel’s bankruptcy proceedings in an effort to expedite the termination of Flywheel’s lease.
The deal is unique, according to a Stroock spokesperson, because it may be one of the first instances of a commercial tenant in New York City declaring bankruptcy in the wake of COVID-19, having its lease terminated by rejection in bankruptcy court, and having the space re-let to a new tenant in a coordinated deal. Experts in the Stroock real estate group, the spokesperson says, think additional deals like this may be coming down the pike as more companies restructure or seek bankruptcy protection due to COVID-related closures.
The Stroock team was led by national Real Estate Group partner Trevor Adler and included Financial Restructuring special counsel Sherry Millman, Financial Restructuring associate Alexander Fraser and Real Estate special counsel Debra Sapp.
“We are thrilled to welcome CycleBar to 51 Astor, rounding out the exceptional retail offerings that complement our roster of blue-chip office and educational tenants,” said Edward J. Minskoff, Chairman and Chief Executive Officer of EJME. “This was a unique deal executed during challenging times that hints towards the potential future of COVID-related leasing and restructuring agreements.”