Sonder Holdings’ leasehold interests have hit the market following the company’s demise.
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Gordon Brothers is taking bids on former Sonder leases at 190 locations in 17 states through Dec. 30. The leases include fully furnished boutique hotels, apartments and cottages, according to a press release.
Buyers can bid on one lease up to a full portfolio. All offers are subject to court approval.
“These leases offer a unique opportunity for growth minded hospitality companies to acquire premier turnkey locations to rapidly expand their portfolio,” Gordon Brothers co-Head of North America Real Estate Services Michael Burden said in a statement.
Launched in 2014, alternative hospitality company Sonder offered short-term stays in hotels and apartments before abruptly shutting down in November. Its business model was to enter long-term leases with apartment and hotel owners, taking up blocks of rooms or entire buildings, then renting those out as short-term rentals through its platform.
Sonder announced its plans to wind down and file for Chapter 7 bankruptcy on Nov. 10, largely blaming “severe financial constraints” from integrating its systems with Marriott following a licensing agreement with the brand.
The sale of Sonder’s assets was approved by the U.S. Bankruptcy Court for the District of Delaware last week, according to the sale notice on the Gordon Brothers website.
Among the properties included in the Chapter 7 bankruptcy sale are full hotels and apartment buildings in markets such as Boston, Chicago, Los Angeles, Miami, New York City and Washington, D.C.
Prospective bidders will have to sign a nondisclosure agreement to protect the confidentiality of certain debtor information. Winning bidders will be required to provide proof of funds by Jan. 9 as the asset sales are scheduled to close on Jan. 28.
“Gordon Brothers has been fully engaged in this process and we are confident that their team will provide valuable assistance to maximize value for the estates,” Jami Nimeroff, the trustee appointed to manage the orderly wind-down of Sonder Holdings, said in a statement.
Sonder did not respond to Bisnow's request for comment.
Property owners with Sonder leases have faced an uphill battle as they seek to restore cash flow at their properties.
In the aftermath of its abrupt shuttering, two of Sonder's New York City landlords sued the San Francisco-based company.
Los Angeles landlords who had Sonder locations claim in pending lawsuits that Sonder owes them more than $18.9M in unpaid rent and other fees, court records show.
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