Vornado Sues Real Estate Firm For $1.1M In Unpaid Rent
Vornado has sued another major developer, claiming that it failed to pay rent at a Midtown office building and won’t leave the space.
A Vornado affiliate filed a lawsuit against its tenant, Hongkun USA Real Estate Development, saying the company owes $1.1M in back rent and costs associated with it for its space at Vornado’s 888 Seventh Ave., Crain’s New York Business reports.
According to the lawsuit, filed with the New York County Supreme Court Wednesday, Vornado says it agreed to defer 50% of Hongkun USA’s rent payments between April and June to be paid monthly over the course of 2021. Hungkon allegedly failed to make these payments along with other payments that were allegedly past due, according to the suit.
Hungkon was given notice on Feb. 8 that it would need to pay nearly $192K due up to that date by Feb. 26 or terminate the lease and leave the building, per the lease agreement, according to the complaint. Hongkun hasn't done either, Vornado claims.
“To date, Tenant has refused to vacate and surrender the Premises to Landlord,” Vornado states in the lawsuit. The real estate investment trust has its headquarters at 888 Seventh Ave.
The landlord claims it also agreed to defer 50% of its tenant's rent payments over the second half of 2020 to be paid in the first quarter of next year.
Vornado is asking the court to force Hongkun to pay back the rent and fees plus interest. Representatives for Vornado and Hongkun USA did not immediately respond to Bisnow’s request for comment.
This is the latest landlord-tenant dispute involving two real estate companies over unpaid office rent. Last June, a Paramount Group subsidiary took Douglas Elliman to court for $273K in unpaid rent.