A Mall's Fight to Kick Out a VR Gaming Venue

Eviction Notice Ignored

Destiny USA, a massive mall in Syracuse, New York, is locked in a legal dispute with Zero Latency, a virtual reality (VR) gaming company. The mall is seeking to evict Zero Latency after its lease expired, but the company has refused to vacate the premises.

The Lease Dispute

• Opening & Operations: Zero Latency opened in May 2023, offering immersive VR gaming experiences in a 5,500-square-foot arena.
• Lease Terms: The initial lease was for two months at $2,000 per month.
• Eviction Demand: Destiny USA sent multiple notices for Zero Latency to leave by the end of summer, but the company remains operational.
• Legal Action: The mall is now seeking a judge-issued eviction warrant and recovery of unpaid rent and interest.

Zero Latency's Stance

Despite the eviction threat, Zero Latency continues to take holiday season reservations, showing no intention of leaving.

Destiny USA's Financial Struggles

• Mall Size: One of the largest malls in the U.S., with over 2 million square feet of retail space.
• Ownership: Operated by Pyramid Cos.
• Financial Troubles: Missed a $300 million loan refinancing deadline in June 2024 but has not been taken over by debt holders.

Zero Latency's Global Presence

• Over 100 venues worldwide, including 10 in the U.S.
• Another venue operates at Salmon Run Mall in Watertown.

Unresolved Questions

The standoff raises questions about lease agreements and the responsibilities of tenants and landlords. Both parties have declined to comment on the situation, leaving the outcome uncertain.

A Reminder of Commercial Real Estate Complexities

This legal battle highlights the challenges that can arise in commercial real estate, especially when financial and operational disputes collide.