Rent hike threatens Joffrey Ballet School

Sabet Group bought its Grove Street dorm for $24M in 2014

TRD New York /
Jun.June 13, 2016 08:42 AM

A decades-old ballet school says it can’t pay its new rent at the Sabet Group’s 61 Grove Street, and the dispute may force it into bankruptcy.

Long Island-based Sabet raised the Joffrey Ballet School’s rent at the property to $108,000 per month from $40,000 per month after it bought the five-story, 15,000-square-foot rental-and-retail building in 2014, for $24 million.

The new landlord gave the school 30 days to accept the new deal or relocate students it housed in the building, according to the New York Post. The school took the new deal, but, after about a year, is no longer able to make the payments. Sabet is now suing, according to the Post.

The building has 12 apartments and three retail units. Sabet also raised rent on Boots & Saddle, a drag lounge that had called the building home for 40 years. It was forced to relocate.

The Joffrey School was founded in 1953 by famed choreographer Robert Joffrey. Its rock opera “Astarte” was featured on the cover of Time magazine in 1968.

The landlord is seeking $800,000 as a penalty for breaking the lease. The company told the post it has worked out a deal under which Joffrey would pay $200,000 a month.

“There’s no way to pay that,” the school’s executive director Christopher D’Addario told the Post. [NYP]Ariel Stulberg


Related Articles

arrow_forward_ios
(Image by Wolfgang & Hite via Dezeen)

Hudson Yards megadevelopment inspires a new line of sex toys

Hudson Yards megadevelopment inspires a new line of sex toys
Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio
Wendy Silverstein (Credit: Getty Images)

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
Top 5 TRD YouTube videos you may have missed

Skyscrapers, business strategies, and brownstone renovations made TRD’s top videos last week

Skyscrapers, business strategies, and brownstone renovations made TRD’s top videos last week
President Donald Trump (Credit: livier Douliery - Pool/Getty Images)

WeChat ban on hold: Why that’s good for real estate

WeChat ban on hold: Why that’s good for real estate
President Donald Trump with developer Steve Witkoff, John Catsimatidis and Blackstone’s Stephen Schwarzman (Getty; iStock)

“That was a business decision”: Why real estate execs are backing Trump — or backing away

“That was a business decision”: Why real estate execs are backing Trump — or backing away
New York City restaurants have struggled to make rent throughout the pandemic but August marked a new high. Andrew Rigie of the NYC Hospitality Alliance (Getty; Institute of Culinary Education)

Rent struggles for NYC restaurants now worse than ever

Rent struggles for NYC restaurants now worse than ever
Companies are relying on surveys and other data points to determine who will come back to offices first. (iStock)

How do companies decide who should return to offices first? It’s tricky

How do companies decide who should return to offices first? It’s tricky
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...