One, two, three…knockout.
A New York State Supreme Court judge has ordered the boxing-inspired fitness center Rumble to fork over at least $925,572 in back rent for its location at 700 Broadway – and while it can’t cancel its own lease its landlord can file to evict the fitness facility.
Although the pandemic created chaos for gyms and restaurants that were forced to remain closed through the governor’s numerous executive orders, the judge found the commercial lease signed in September 2016 still obligated Rumble to pay rent to the retail condominium owner, which is the Schermerhorn Building Condominium’s Board of Managers.
The lease is for 10 years and 4 months with option to extend for an additional five years.
“In the commercial realm both landlords and tenants have endured financial hardships but in the specific circumstances herein this is a long term lease and the COVID situation and related Governmental orders were for a fixed time period since concluded,” Justice Laurence Love wrote in his April 26 decision.
The judge also cited case law awarding building owners rent in previous pandemic lease disputes with both the Gap and Times Sq. Photo.
An insurance company was also ordered to fork over a $804,921 undertaking that the judge had ordered Rumble to post in August 2021 to cover rent due at that time. The $925,572 was to cover rent due from March 1, 2020 through December 31, 2021.
The decision is “murky” a source said as to whether both sums are to be paid to the building owner or if the undertaking is to be applied to the amount due.
The property owner was also awarded fees to pay its attorney, Massimo D’Angelo of Akerman, which could be in the “triple digits,” a source said.
“We have already worked out a financially viable settlement that works for both parties and allows Rumble to remain in the space,” Rumble’s attorney Brian Cohen told The Post.
Rumble is currently open.