The owner of IG Fit Health Club sued its landlord for allegedly reneging on an agreement for the gymnasium to renew its 10,000 square foot lease to 242 East 14th Street for five years.
Abdo Fitness Corp.owner of the East Village gymnasium, filed a lawsuit Tuesday in New York County Supreme Court against two entities related to Stellar management to force Stellar to extend the health club’s lease until 2027 and bear the cost of the legal battle.
The gymnasium claimed it would be forced to lay off its more than 40 employees if the lease expires Oct. 31 and it would lose the million dollars it poured into the property to install new sprinklers, update the electrical and plumbing systems and leveling some of the floors, according to the lawsuit.
“Even if Abdo could somehow find a suitable space for a new gym, and even if he could fund the development of that space, by the time Abdo was ready to open that new facility, its customers and staff would be lost, and it would be having to start from scratch,” the complaint reads. “[The] efforts to deny Abdo the lease extensions to which he is contractually entitled…present a direct and imminent ongoing threat to Abdo’s continued viability.
Abdo first leased the ground floor and lower level of the seven-story building in 2012. He claimed a 2018 renewal with Stellar included an option for Abdo to redevelop his space in 2022, to provided the gym notifies Stellar and is not behind on rent, according to the lawsuit.
While Abdo racked up $534,000 in unpaid rent after the pandemic forced the gymnasium to close for six months, he claimed to have fully paid his bill in September 2021 and informed Stellar that he would keep the space. But after Abdo and Stellar disputed the gymnasium’s water and property tax bill, Stellar allegedly told Abdo earlier this month that he could not renew his lease, according to the complaint.
It’s unclear whether IG Fit will reopen and the lawsuit alleged that Kassin Sabbagh Realty (KSR) has already started The advertisement space to potential tenants. Stellar did not respond to a request for comment. Abdo’s lawyer, Rosenfeld & Kaplanit is Rosenfeld taband KSR brokers declined to comment.
Celia Young can be contacted at cyoung@commercialobserver.com.
