Hackman sues Erewhon alleging unpaid rent to the tune of $275K

Hackman Capital Partners sued Erewhon for unpaid rent tied to the Culver Steps property. The lease was executed in June 2021, started in June 2023, and runs until May 2038. Monthly rent is structured to increase over time, starting around $86,500 per month for the first five years, rising to about $95,000 for the next five, and reaching roughly $105,000 for the last five. Additional obligations include common area maintenance and taxes. The complaint states the rent totals more than $1 million annually and that the tenant failed to pay after demands. The landlord seeks damages exceeding $275,000, including amounts allegedly owed and legal fees.

"Hackman Capital Partners is suing Erewhon over unpaid rent, claiming its luxe Culver Steps tenant owes more than $275,000, in a breach-of-contract complaint dated May 21. Their lease agreement was made in June 2021, began June 2023 and isn't set to expire until May 2038, per the complaint. Per the lease, Erewhon would pay a monthly rent that periodically increased: about $86,500 per month for the first five years, $95,000 per month for the next five and about $105,000 per month for the last five."

"There are other costs such as common area maintenance and taxes, too, per a copy of the lease agreement attached to the court documents. The rent comes out to more than $1 million each year and per square foot starts at $6 per month then goes up to about $7.30. The average asking rent for retail in Los Angeles was less than $3 per square foot per month, according to Kidder Mathews' first quarter report."

"Landlord has demanded payment from tenant and tenant has failed to pay, the complaint reads. Michael Hackman's company wants money damages in excess of $275,000 which includes what is allegedly owed, legal fees and more. Erewhon CEO Mariano Anthony Antoci signed the lease agreement for the space at 9300 Culver Boulevard."

"Hackman and Affinius Capital are shopping Culver Steps, a mixed-used campus. The sellers chose Newmark to market the totally leased downtown Culver City real estate, which is about 122,000 square feet with mostly office and some retail. Erewhon anchors the retail space. The rumored price tag is $150 million, or about $1,200 per square foot."

Read at therealdeal.com