Sonder Sued for $103 Million by Disgruntled Landlord

August 11, 2020

A disgruntled landlord is suing hospitality startup, Sonder, for $103 million. Natha Berman’s MetroLoft Management wants Sonder out of its office-to-residential conversion at 20 Broad Street, pay its back rent of $3.9 million, and pay the over $100 million remainder of its lease. The landlord’s reason? Sonder hasn’t paid rent since last month. 

Sonder’s response was that it had ceased operations in that location in May due to a Legionella outbreak. A Sonder spokesperson said that Sonder had “not found the owner’s approach to remediation and long-term water management issues at the building acceptable.”

A MetroLoft spokesperson says the company is sympathetic to the issues the short-term sector is facing in the current market climate and is willing to work with Sonder to find a mutually beneficial solution.

Unfortunately, Sonder did not assuage. The MetroLoft spokesperson said:

“Instead Sonder has chosen the opportunistic route and decided to abandon its lease and use other circumstances as a pretext for vacating the property entirely. This will not stand and we strongly believe the courts will find in favor of the merit of the landlord’s position.”

May brought bountiful money to the startup. It ran a funding round and raised $150 million from investors. It claims the move was not a “coronavirus bailout” and the startup has even rehired and restored hours for 100 employees.

August 11, 2020
Victoria has been writing about property portals and marketplace sites for Online Marketplaces for over 3 years. She is also our resident artist and is responsible for all of the infographic content on the site.

Subscribe to our mailing list to get the famous, free Friday newsletter!

News and analysis to help build better online marketplace businesses, in your inbox, every Friday

Related News

idealista apartments barcelona
Idealista Acquires Certificate Management Specialist Certicalia

Real estate marketplace Idealista has acquired 100% of Certicalia, a Spanish platform for real estate-related certifications and administrative documentation. The...

Read More
costar domain 1
Supreme Court Approves Shareholder Vote for CoStar Group's Domain Acquisition Bid

New South Wales' Supreme Court has approved a shareholder vote for Domain to decide on CoStar's proposed acquisition of the...

Read More
Product Update June27 2
Product Roundup: Redfin, LeBonCoin, CaixaBank, Coralytics, Yandex, Zoopla

This week's roundup is very Europe-heavy, but we'll start in the United States with Redfin...   United States: Redfin integrates Thumbtack...

Read More
olx app op 1 3
OLX Signals Shift of Strategy Towards B2C at Capital Markets Day

OLX Group is pushing forward with a significant pivot from its traditional C2C classifieds model to a more scalable, B2C-led...

Read More

Editor's Pick