STK Steakhouse Chain Cooks Up Lawsuit in Union Square
ABS Real Estate Partners is being served with a piping hot lawsuit in Union Square.
The ONE Group, which operates the STK steakhouse brand, sued ABS in New York County Supreme Court over a rent dispute, Bisnow reported. The fight threatens the future of a 13,000-square-foot restaurant planned for 200 Park Avenue South, a building owned by ABS.
The ONE Group allegedly signed a 10-year lease for the space at the beginning of 2025, but claims either the landlord or a former tenant had been using the corner unit as storage until last month, allegedly leaving the tenant without the ability to get its space set up.
Two weeks ago, the ONE Group affiliate received a notice that it owed more than $109,000 in rent for September, plus a late fee, according to court documents. If the ONE Group didn’t pay up by Sept. 23, it risked lease termination, according to the notice. ABS allegedly tacked on another day to the deadline as the fight has played out.
The restaurant is seeking an injunction and temporary restraining order to prevent a lease termination.
ABS’ lawyers say the restaurant doesn’t qualify for an emergency injunction because it failed to provide advance notice for its filing.
The fight also strikes at the heart of what qualifies as possession for a tenant. The restaurant’s attorneys say STK hasn’t taken official possession and couldn’t even access the space until the middle of last month, meaning it shouldn’t owe rent. The lease also allegedly includes a clause that delays rent for the first 300 days after possession is taken.
But ABS’ legal team told the publication that STK has had the keys to the space for a year at this point and even paid rent this past July and August.
“This is not our first encounter with a commercial tenant seeking the avoidance of the payment of rent,” ABS president Gregg Schenker said in a statement made through his attorney.
Elsewhere in Manhattan, ABS filed a rezoning application for a 30-story, 394-unit housing development with a commercial component at 515 West 57th Street in Midtown West in the spring. The project is planned to include 119 affordable units under New York City’s mandatory inclusionary housing rules and would need to go through ULURP.
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