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.
Erewhon, Hackman Capital Partners and its attorneys did not immediately respond to a request for comment.
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. That’s pricey — and the question now is whether a legal battle means a markdown.
In August 2024, Hackman and Affinius landed a $75 million, five-year refinance loan on Culver Steps, so the debt comes due in three years. The debt may not be the issue in this case, but Hackman has had debt problems.
Hackman defaulted on a billion dollar mortgage on Radford Studio Center earlier this year, then lost it to Goldman Sachs, which is now in talks with Netflix — who could purchase the property for a lot less than Hackman’s price. The company also defaulted on a $100 million loan on what once was its Sony Pictures Animation campus located in Culver City, which now faces foreclosure. And, Deutsche Bank is reportedly recruiting a broker to market Hackman’s Television City.
This isn’t the first rent-related accusation against Erewhon. In late 2022, it was separately accused of failing to pay rent at a Studio City location. The fancy grocer later alleged its landlord left out facts during lease negotiations, wrongly increased rent, denied access to parking and more.
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