Kilroy Realty has taken its former tenant NeueHouse to court, accusing the members-only club of walking away from more than $5 million in unpaid rent at the Columbia Square clubhouse in Hollywood. The landlord has filed both unlawful-detainer and breach-of-contract actions, with June hearings now on the calendar. At the heart of the dispute are months of missed payments that Kilroy traces back to September 2024, turning what was once a showpiece lease into a case study in how a single, highly customized tenant can leave a gaping, hard-to-fill hole in a landlord’s portfolio. For owners who leaned into premium coworking and social clubs during the post-pandemic office rebound, it is a cautionary tale.
Lease and the Columbia Square space
NeueHouse inked a 15-year lease in 2014 to take over the old CBS building at Columbia Square and ultimately occupied roughly 93,000 square feet, a headline-making deal at the time. As reported by the Los Angeles Times, the buildout layered in screening rooms, studios and event venues, a setup that made the space catnip for entertainment clients but far tougher to quickly repurpose once the tenant faltered.
The landlord's claims
According to court filings, Kilroy alleges that NeueHouse stopped paying rent in September 2024. A 322-page complaint submitted in March 2025 pegged unpaid rent at about $2 million at that point, with additional rent said to be piling up at roughly $592,000 per month after March 2025 - a pace Kilroy says pushed the total tab beyond $5 million by late summer. As reported by Bisnow, Kilroy served a three-day notice to pay or quit on Aug. 20, 2025 and followed up with an unlawful-detainer filing on Aug. 29, 2025. Attorneys for NeueHouse have denied the allegations in their court responses.
Brand sale and Chapter 7
NeueHouse abruptly closed its Hollywood, Venice and Manhattan locations and filed for Chapter 7 bankruptcy in September 2025. The brand and the Madison Square outpost were then sold through a court-approved asset purchase. As reported by Skift, Convene Hospitality Group acquired NeueHouse's intellectual property in January 2026 and has no plans to bring back the Los Angeles locations.
Legal angle: bankruptcy limits landlord recovery
Bankruptcy law throws a wrench into any hope Kilroy might have had of simply collecting every last rent check on the lease. Trustees often reject above-market leases, and damages tied to a rejected commercial lease are typically limited by statutory formulas that cap the amount of rent a landlord can claw back. Jonathan Shenson, a bankruptcy partner, told Bisnow that rejection of a lease “effectively stops the clock on additional rent accruing and puts in place certain caps on how much a landlord can get back.”
What comes next for the space
With June hearings approaching, Kilroy's shot at recovering millions now hinges on how the bankruptcy estate is handled and whether the trustee allows any recovery beyond the usual statutory caps. In the meantime, Kilroy has been busy trying to turn the page at Columbia Square, marketing and repositioning the former NeueHouse space. Industry reports show that Philadelphia-born Fitler Club has signed on to take over the old footprint, signaling how landlords are courting fresh operators after high-profile failures. As reported by CoStar, the Fitler Club deal was announced in February 2026.
