William Farrington
New York’s long-running theater production “Sleep No More” is embroiled in a legal battle with its landlord, Centaur Properties, over alleged unpaid rent and lease disputes.
The drama, fittingly Shakespearean in nature, began earlier this year when Centaur moved to evict the immersive “Macbeth” experience from the McKittrick Hotel in Chelsea, claiming the show’s permit expired more than two years ago, according to The Real Deal.
In response, “Sleep No More,” operating under its entity PDNYC, filed its own lawsuit accusing Centaur of reneging on a prior agreement. The production company alleged that Centaur had initially agreed to amend the lease terms as the landlord faced financial difficulties.
Centaur Properties is now seeking $4.5 million in back rent from the show’s guarantors, Arthur Karpati and Jonathan Hochwald, and is also pushing to dismiss the production’s lawsuit.
Centaur has enlisted the legal firm Oved & Oved, known for its defense of real estate families in high-stakes litigation.
“This dispute is not about principle but about principal,” attorneys Terrence and Darren Oved told TRD in a statement. “PDNYC’s complaint is a baseless, misguided and transparent attempt to avoid its obligation to pay over $4 million in past due rent.”
A rep for “Sleep No More” has not responded to requests for comment.
The production’s lawsuit contains several allegations against Centaur, including claims of a deal to increase the rent by $5.1 million for the first year to help Centaur refinance its mortgage. However, Centaur’s recent filings deny the existence of such an agreement and reveal that they notified their lender of their decision to extend the maturity date on their loan to May 2028.
Centaur argues that the show’s claim for damages is baseless, as the production continues to use the premises without paying rent. Additionally, Centaur maintains that it has not sought to terminate the lease due to refinancing issues.
The landlord purchased the McKittrick Hotel property in 2007 for $29.4 million. “Sleep No More” has been a tenant since 2010, typically staging eight performances a week.
The show is expected to come to an end this year, closing out its final show on Sept. 29.