(EDITOR’S NOTE: The news comes several years after Knotel announced a $25 million round of Series A funding that closed in 2017. According to Newmark, the firm is one of the top three flexible office players in New York. The company plans to open locations in London and other cities. The firm currently operates 700,000 square feet across New York City and San Francisco.)
NEW YORK, Jan. 31, 2021 — Newmark Group, Inc. (“Newmark”) today agreed to provide debtor-in-possession (“DIP”) financing to Knotel, Inc. (“Knotel”) and acquire Knotel’s business through its Chapter 11 sales process.
“We look forward to supporting Knotel through this difficult period,” said Newmark Chief Executive Officer Barry Gosin. “We are providing capital to Knotel so it can right-size its business for the path forward.”
“Newmark’s commitment offers a path forward amidst this challenging climate,” said Knotel Co-Founder and Chief Executive Officer Amol Sarva. “We are optimistic that, through a successful restructuring, we can refocus on our mission of providing state-of-the-art, tailored flex space in key U.S. and international markets. We have engaged Hilco Real Estate, a real estate restructuring specialist, to assist Knotel.”
To facilitate this transaction under Section 363 of the United States Bankruptcy Code, an affiliate of Newmark has agreed to provide Knotel with approximately $20 million in cash as DIP financing to support Knotel through the bankruptcy process. Additionally, Newmark owns all of the outstanding first and second-lien secured debt of Knotel. Newmark’s agreement to acquire Knotel assets is subject to approval from the United States Bankruptcy Court.
Newmark Group, Inc., together with its subsidiaries (“Newmark”), is a world leader in commercial real estate services, with a comprehensive suite of investor/owner and occupier services and products. Our integrated platform seamlessly powers every phase of owning or occupying a property. Our services are tailored to every type of client, from owners to occupiers, investors to founders, growing startups to leading companies. Harnessing the power of data, technology, and industry expertise, we bring ingenuity to every exchange, and imagination to every space. Together with London-based partner Knight Frank and independently owned offices, our 18,800 professionals operate from approximately 500 offices around the world, delivering a global perspective and a nimble approach. In 2019, Newmark generated revenues in excess of $2.2 billion.