Sonder Sued for $103 Million by Disgruntled Landlord

August 11, 2020
Share this Post: 

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 news updates!

Enter your email address and get updates from Online Marketplaces.

Related News

Proptech Group Results Generic
PropTech Group Shows Impressive Growth in Q1 Figures

The ASX-listed property technology group The PropTech Group has released figures for Q1 of its FY22 operations. Headline figures from...

Read More
Bien Ici Paris
Bien’ici Debuts New Elixir Property Platform

French property portal Bien’ici has launched a technology platform focused on sales of new property projects. Elixir aims to provide...

Read More
Funda
Dutch Portal Funda Acquires Commercial Player RealNext

Dutch commercial property platform RealNext has been acquired by NVM in a move that will see its assets incorporated into...

Read More
Zumper Movoto Deal
US Portal Operators OJO Labs and Zumper Sign Listings Deal

The US real estate portal operator OJO Labs has announced that it has signed a listings partnership deal with rental...

Read More

Popular News