On the Way Out, BGO Sues Convene at 101 Greenwich

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Landlord BGO wants a parting present from its tenant Convene at 101 Greenwich Street: back rent.

The asset management firm filed a lawsuit against the flex-space provider in Manhattan state Supreme Court last week, Crain’s reported. BGO alleges Convene owes it $10.6 million after failing to make rent payments since February.

Alleged missed payments are only part of what BGO is seeking. The landlord alleges that free rent credited to Convene over the course of the lease needs to be paid back because of the tenant’s alleged default.

Convene started occupying 74,000 square feet in 2017 and holds a lease that runs until 2029. Its space includes conference rooms, desk-lined work areas and a commercial kitchen; it also hosts Convene’s corporate offices.

Last week, Convene signed for 32,000 square feet at Scholastic’s 555 Broadway in Soho. The location is expected to open next spring, representing the company’s 16th location in New York City but first in the neighborhood.

Before Convene allegedly stopped paying rent, BGO reached an agreement to sell the Financial District property to Israeli billionaire Idan Ofer. Quantum Pacific agreed to pay more than $100 million for the 26-story, 400,000-square-foot property, though the exact price hasn’t been disclosed; the deal is expected to close by the end of the year.

BGO paid $225 million to acquire the property in 2016 and spent another $75 million renovating it. The building is 66 percent leased, according to CoStar, counting Independence Point Advisors, Moment Technology and Pro Shop Holdings among its tenant roster.

Cove Property Group, which was a partner in the acquisition, sold its stake in the building two years ago.

Ofer is partnering with Nathan Berman’s Metro Loft Management and will likely convert at least part of the property into residences. In November, Ofer partnered with Berman on an $88 million purchase of 767 Third Avenue, Ofer’s first investment in U.S. commercial real estate, where another conversion is likely in the offing.

— Holden Walter-Warner