Real Estate & Construction  June 29, 2023

Twitter parent X Corp. sues Boulder landlord over $5.8M allowance

BOULDER — Facing eviction from its Boulder office, X Corp., the successor to Twitter Inc., has filed suit against its landlord, alleging that it was wrongfully denied $5.8 million in a tenant-improvement allowance.

The lawsuit was filed Wednesday in Boulder County District Court against Lot 2 SBO LLC, a holding company affiliated with S’Park co-owner The John Buck Co.

A Boulder judge previously granted the landlord permission to evict Twitter from its offices in the S’Park development at 3401 Bluff St., where Twitter leased 65,000 square feet.

But in Wednesday’s filing, X Corp. alleges breach of contract and wrongful eviction.

X Corp. is seeking damages in an amount to be determined, including allowances for tenant improvements, interest and attorneys’ fees.

“Defendant improperly obtained a writ of restitution and judgment for possession of the Premises and intends to carry through with the eviction on June 30, 2023, despite Twitter having warned Defendant, including via letter dated June 14, 2023, that Twitter was not in Default under the Lease, that eviction was improper, and that Twitter would pursue all legal recourse, including for damages, if Defendant carried out the eviction,” the lawsuit states.

Attorneys for X Corp. and Lot 2 SBO could not immediately be reached after hours Thursday.

Twitter signed a 10-year lease for the space on Feb. 14, 2020, according to the lawsuit.

“After executing the Lease, Twitter paid for and constructed tens of millions of dollars’ worth of leasehold improvements to the Premises according to specifications to which Defendant agreed in advance,” the complaint states.

“Twitter completed its work and, after submitting the requisite documentation to Defendant, became entitled to the payment of approximately $5.8 million from Defendant under the terms of the Lease as a tenant improvement allowance …”

Twitter sought reimbursement of the tenant-improvement allowance “on or before November 2022,” the lawsuit states.

The landlord instead claimed in December that Twitter was in breach of its lease.

“In a letter dated December 19, 2022 — well after Twitter demanded payment of its Tenant Improvement Allowance – Defendant wrongly and as a pretext, claimed that Twitter breached the lease by not paying its share of taxes and operating expenses for December 2022,” the lawsuit alleges.

“Defendant then ignored Twitter’s repeated demands for disbursement of the Tenant Improvement Allowance, ignored Twitter’s timely invocation of its rights under the lease to have the unused portions of the Tenant Improvement Allowance applied to any payments due to Defendant under the Lease, and proceeded to evict Twitter from the Premises for allegedly not paying amounts due under the terms of the Lease.

“Twitter seeks to recover monetary damages for the Tenant Improvement Allowance owed to Twitter, and damages flowing from Twitter’s wrongful eviction including but not limited to, the loss of the money that Twitter spent on tenant improvements.”

Twitter has faced several legal actions regarding its Boulder operations. In December, it faced a Demand for Compliance or Right to Possession Notice for its other Boulder office, at 1301 Walnut St.

And in May, Boulder-based Avalanche Commercial Cleaning Inc sued Twitter, alleging that it was stiffed for nearly $100,000 in unpaid bills for cleaning services at the Walnut Street facility. 

The lawsuit is Case No. 2023CV30461, X Corp. v. Lot 2 SBO LLC, in Boulder County District Court.

Christopher Wood
Christopher Wood is editor and publisher of BizWest, a regional business journal covering Boulder, Broomfield, Larimer and Weld counties. Wood co-founded the Northern Colorado Business Report in 1995 and served as publisher of the Boulder County Business Report until the two publications were merged to form BizWest in 2014. From 1990 to 1995, Wood served as reporter and managing editor of the Denver Business Journal. He is a Marine Corps veteran and a graduate of the University of Colorado Boulder. He has won numerous awards from the Colorado Press Association, Society of Professional Journalists and the Alliance of Area Business Publishers.
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