New Tenant Takes Space After Bankrupt Retailer Departs In Coordinated Deal

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.