The CycleBar fitness franchise has taken over the former Flywheel space at Edward J. Minskoff’s 51 Astor Place.
A team from Stroock advised Edward J. Minskoff Equities (EJME) on the retail lease while simultaneously representing the landlord in the bankruptcy proceedings of the previous tenant, Flywheel, to expedite the termination of Flywheel’s lease.
The Stroock team was led by national Real Estate Group partner Trevor Adler and included Financial Restructuring special counsel Sherry Millman, Financial Restructuring associate Alexander Fraser and Real Estate special counsel Debra Sapp.
“We are thrilled to welcome CycleBar to 51 Astor, rounding out the exceptional retail offerings that complement our roster of blue-chip office and educational tenants,” said Edward J. Minskoff, chairman and Chief Executive Officer of EJME. “This was a unique deal executed during challenging times that hints towards the potential future of COVID-related leasing and restructuring agreements.”
“Working in partnership with the Minskoff Equities team was paramount to executing the rapid re-leasing of this retail space, located within one of the most exclusive buildings in an active commercial corridor,” said Stroock partner Trevor Adler. “Stroock’s national leasing team, together with our industry-leading Financial Restructuring Group, continues to guide our clients through the challenges of the COVID-19 pandemic, and we are grateful to work with industry leaders like Minskoff Equities.”
Flywheel filed for Chapter 7 bankruptcy last fall and permanently closed all 42 of its studios while laying off 1,200 employees.
California-based CycleBar, meanwhile, is enjoying a global expansion and now has over 200 studios worldwide. CycleBar’s parent company, boutique fitness curator Xponential Fitness, has been credited with redirecting the franchise operation pre-COVID with website and app upgrades, along with CRM and POS overhauls, that have helped CylceBar ride out the pandemic.
The company now operates in nine countries. Studios are currently open in the United States, Canada, Japan, South Korea and Saudi Arabia. It also has plans to open in Germany, Austria and Singapore.