Landlord sues Philly gym for breach of contract, claims defendant owes nearly $187K

By Jon Campisi | Jun 6, 2013

A popular Philadelphia workout facility has been hit with a breach of contract claim by the owners of the property in which the gym is located.

Bucks County attorney Joseph J. Marinaro filed suit at the Philadelphia Court of Common Pleas on May 30 on behalf of his client, identified only as 821 N. 2nd Street Partners LP, which claims Sweat Northern Liberties Inc. has failed to pay rent since February.

The plaintiff contends it is owed more than $28,000 in back rent as of the middle of last month.

The complaint states that the lease agreement between the two parties says that Sweat had agreed to pay base rent of $5,500 per month, together with property taxes in the amount of $676.15, condo association fees of $162 and the city’s Use and Occupancy tax of $234, for a total payment of $6,572.15 each month through Feb. 28, 2022.

The defendant, the suit states, has defaulted on its obligations by failing to pay the plaintiff for rent and other charges for the months of February, March, April and May, and that it failed to pay late charges totaling more than $2,000.

Notice of the allegedly overdue rent and other charges were sent on May 22, the complaint states, but thus far the gym has “failed and refused to cure the defaults.”

As per the terms of the lease agreement, the landlord is entitled to recover damages from the defendant in the amount of $28,683.61, in addition to accelerated rent for 24 months thereafter, which totals $157,731.60, the plaintiff claims in its civil action.

In all, the plaintiff seeks damages in the amount of $186,415.21.

The two parties first entered into a lease agreement for the North 2nd Street building on March 1, 2011, the record shows.

The gym is part of a chain of regional exercise facilities called Sweat Fitness.

The location that is subject of this litigation sits in the heart of Philadelphia’s Northern Liberties neighborhood, a gentrified section of the city that in recent years has transformed from former industrial hub to home to young professionals, popular restaurants and retail outlets.

Northern Liberties is currently considered prime city real estate, and is home to the popular Piazza at Schmidt’s complex, a mixed-use development that has been a major draw for the city.

It sits on the site of a former brewing company.

The case ID number is 130503354. 

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