Atlas Capital Group Sues LA Times Owner For $24M Over Missed Rent, Leaving Property 'In Shambles'

An Atlas Capital Group affiliate is suing the owner of The Los Angeles Times for $24M for failing to pay rent on the former LA Times printing plant and for allegedly leaving the site in substandard condition. 

Atlas alleges that lease guarantor NantMedia — an arm of NantWorks, founded by LA Times owner Patrick Soon-Shiong — violated its rental contract at the former printing plant at 2000 E. Eighth St.

The complaint claims that LA Times operations left “toxic ink stains,” holes in the walls, torn-up floors and active leaks, among other “gross disrepair” at the property, The New York Post reported.

Atlas Capital bought the 648K SF printing plant and the surrounding 15 acres of parking for $240M in 2019. In 2021, it proposed a massive $650M redevelopment of the site that would transform it into a studio complex with 17 soundstages, 300K SF of production space and 212K SF of offices. The project received planning commission approval in the following year. 

But while Atlas Capital was making these plans, the newspaper was still operating from the plant. 

Atlas’ complaint alleges that the newspaper terminated its lease early, in March 2024, and was expected to be out of the facility by the end of August 2024.

Instead, the newspaper remained in the plant until September 30, “reneging on the lease obligations and leaving it in shambles and unsecured,” the lawsuit alleged. 

Lawyers for Atlas affiliate Alameda told the NY Post NantMedia also refused to pay six months of interest on the late payments.

Atlas claims the LA Times was supposed to restore the plant to its original condition upon leaving. It is pegging damages at more than $20M, including “accrued holdover and future holdover rent” plus the cost of having to return the plant to its original condition. 

An attorney for the LA Times and NantMedia called the lawsuit’s claims “meritless,” according to the NY Post.

“Our client looks forward to resolving the matter,” the lawyer told the outlet.