National + Office | February 1, 2021

Knotel Files for Chapter 11, Will Sell Business to Newmark

Newmark Group said Monday it had agreed to provide debtor-in-possession (DIP) financing to Knotel, Inc. and acquire Knotel’s business through its Chapter 11 sales process. The Midtown South-based flexible office provider filed for voluntary bankruptcy protection Monday.

“We look forward to supporting Knotel through this difficult period,” said Newmark CEO Barry Gosin. “We are providing capital to Knotel so it can right-size its business for the path forward.”

Knotel co-founder and CEO Amol Sarva said, “The pandemic created a uniquely challenging operating environment, with significant impacts on leasing velocity and the rate of renewals in key markets, particularly New York and San Francisco.”

To facilitate this transaction, an affiliate of Newmark has agreed to provide Knotel with approximately $20 million in cash as DIP financing to support the flexible office provider through the bankruptcy process. Additionally, Newmark owns all of the outstanding first- and second-lien secured debt of Knotel.

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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