Delray Beach Tutoring Center Sued for $500,000 in Unpaid Rent

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The owner of Delray Marketplace in West Delray Beach, Florida has filed a lawsuit against The Study Lounge, a student tutoring and test prep center, alleging the business failed to pay hundreds of thousands of dollars in rent over several years. The landlord, KRG/Atlantic Delray Beach, LLC, is seeking to recover over $519,000 in unpaid base and additional rent from The Study Lounge and its individual guarantors, Holly and Christopher Steamer.

Why it matters

This case highlights the financial challenges facing small businesses, especially in the education sector, during the economic uncertainty of the past few years. The lawsuit also underscores the legal risks landlords face when tenants default on lease agreements, and the importance of thorough vetting and guarantees when signing commercial leases.

The details

According to the lawsuit filed in Palm Beach County Circuit Court, The Study Lounge signed a lease agreement in August 2019 for a 4,074-square-foot retail space at 9089 West Atlantic Avenue in Delray Marketplace. However, the business allegedly stopped making full rent payments as early as January 2021, leading to a growing debt that reached over $519,000 by the time the landlord sent a formal demand for payment last summer. In May 2025, the landlord and tenant entered into a 'Repossession Agreement' that allowed the landlord to regain control of the property, but the landlord is still pursuing the past-due rent and future damages through the end of the original lease term in September 2025.

• The Study Lounge signed the original lease agreement in August 2019.
• The business allegedly stopped making full rent payments as early as January 2021.
• By the time the landlord sent a formal demand for payment last summer, the total amount due had reached over $519,000.
• In May 2025, the landlord and tenant entered into a 'Repossession Agreement' that allowed the landlord to regain control of the property.
• The original lease term was set to expire in September 2025.

What’s next

The judge in the case will decide whether to order The Study Lounge and its guarantors to pay the full $519,000 in unpaid rent and damages sought by the landlord.