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PENNSYLVANIA RECORD

Thursday, March 28, 2024

Montgomery County landlords seeking over $100K in alleged overdue costs from MMA training school

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PHILADELPHIA – A Montgomery County property management company is seeking to recoup more than $100,000 from an MMA training school, which allegedly defaulted on its building lease in Philadelphia.

Archworks Philadelphia, LLC, Archworks Investment LP, Archworks I LP and Arch Property, LLC, all of Jenkintown filed suit in the Philadelphia County Court of Common Pleas on Feb. 28 versus Mixed Martial Arts Training Academy Inc., of Philadelphia.

On Sept. 20, 2016, Archworks Philadelphia says it entered into a commercial lease agreement with the defendant and its owner, John DeSimone. According to the lease, MMA Training Academy decided to rent part of the 6th Floor at the building located at 117-125 North 8th Street in Philadelphia, for five years commencing on Nov. 1, 2015. The following terms were also set in the contract:

Term                      Monthly Rent

Months 1-2            $4,575

Months 3-12          $9,150

Months 13-24        $9,404

Months 25-36        $9,658.33

Months 37-48        $9,912.50

Months 49-60        $10,156.67

Month 61               $10,920.83

Besides the minimum rent, MMA Training Academy was obligated to pay a proportional share of 12.71 percent of all property and other taxes, insurance, common area expenses including utilities, management fees and property management, all as additional rent.

Pursuant to the lease, if any payment was overdue for more than 10 days, MMA Training Academy is obligated to pay a late charge equivalent to five percent of each such overdue installment, as well as the past due amounts being charged interest at either 12 percent per year or the legal maximum.

When that very circumstance allegedly occurred on May 24, 2017, the plaintiff sent a demand for rent to MMA Training Academy, to cover all outstanding costs. When no answer was received, the plaintiff sent MMA Training Academy a notice of default on June 27 last year.

“On Sept. 6, 2017, plaintiff filed a complaint in confession of judgment for possession of the premises. MMA Training Academy left the premises in an unclean, damaged condition, which required plaintiff to remove debris, spackle and paint the walls and change the carpet,” the suit states.

The lawsuit alleges specific amounts due and owing from MMA Training Academy are the following:

Unpaid Rent:            $73,200

Late Fees:                $7,003.93

Attorney’s Fees:       $5,485.17

Use/Occ. Taxes:       $9,325.52

Electric:                     $1,078.22

Water:                       $835.69

Parking:                    $960

CAM Reconciliation: $9,561.73

Miscellaneous:          $5,895

Total:                         $113,345.26

Along with the lease, the defendant paid a security deposit of $18,300, thereby reducing the final balance being sought to $95,045.26. However, the defendant has not cured its default.

For breach of contract, the plaintiffs are seeking damages of $95,045.26, plus attorney’s and other professional fees and court costs, ongoing late fees and interest after Feb. 1, 2018, together with such other and further relief as the Court may deem proper.

The plaintiffs are represented by Frank G. Murphy of Anderson Kill, in Philadelphia.

Philadelphia County Court of Common Pleas case 180202965

From the Pennsylvania Record: Reach Courts Reporter Nicholas Malfitano at nickpennrecord@gmail.com

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