BOULDER (CN) — Just two days before losing access to its Boulder, Colorado office building, Twitter countersued its landlord, claiming that it was only being evicted so the landlord could avoid paying out a multi-million dollar tenant improvement allowance.
X Corp., successor to Twitter, sued Lot 2 SBO LLC — owned by Centennial-based legal services company CT Corporation, according to the Colorado Secretary of State's Office — Wednesday night.
“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,” Twitter said in an 11-page lawsuit filed in the Boulder County District Court.
In Wednesday’s lawsuit, Twitter claimed to have been wrongfully evicted from offices in the 64,557-square foot building so Lot 2 SBO could avoid paying out a $5.8 million allowance. Twitter further claimed the landlord breached the lease by failing to mail the eviction notice via overnight mail.
Twitter’s lease promised a monthly base rest of $199,866.88 through April 30, 2032, but also offered a $90-per-square-foot tenant improvement allowance to induce Twitter to sign on while the building was under construction. According to Twitter, the money could be used to cover moving expenses, architectural design, project management, relocation consultants and other soft costs.
The tenant could also apply the improvement allowance to unpaid rent, according to the complaint.
After receiving keys to the property in October 2021, Twitter spent $40 million on property improvements that included constructing a full kitchen, installing a security system, building common areas and other renovations.
Twitter submitted documentation demanding payment of the tenant improvement allowance of approximately $5.8 million last November. In December 2022, the landlord instead accused the tech company of failing to pay its share of taxes and operating expenses, amounting to $101,104.
Lot 2 SBO filed to evict Twitter from the property on May 12 and obtained a judgment after the tech company failed to make an appearance in court. Under the judgment, Twitter will lose the property on Friday.
Twitter asked the court to enforce the lease, allowing it to retain possession of the building.
Twitter, through X Corp., is represented by attorney Damien Zumbrennen, of Superior, Colorado. Neither Zumbrennen, nor attorneys representing Lot 2 SBO immediately responded to press inquiries.
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