“Sleep No More” production fires back at landlord’s lawsuit 

Immersive theater production “Sleep No More” isn’t taking its landlord’s lawsuit lying down.

The production filed a lawsuit firing back against Centaur Properties on Tuesday, weeks after the Chelsea landlord filed a lawsuit of its own, Crain’s reported. “Sleep No More” is suing for breach of contract and fraud, seeking damages.

Those behind the production are accusing Centaur of a “pattern of fraud and unethical practices,” claiming Harlan Berger’s company is trying to sabotage the show to hide its own financial issues.

The Shakespearan drama kicked up last month, when Centaur sued to evict the production from the McKittrick Hotel at 530-542 West 27th Street, claiming the show’s lack of a public assembly permit was endangering guests.

In its lawsuit, the production said it agreed to amend its lease with Centaur two years ago as the landlord neared “financial ruin.” The principals of “Sleep No More” were under the impression that the lease would be renegotiated when Centaur emerged from its post-Covid depths, according to the lawsuit.

As part of the amended lease, the production’s tenancy was extended to 2032, but its rent was also hiked to $5.1 million. Centaur promised the production that the rent increase would only be needed for the first year of the amendment, according to the lawsuit. Centaur allegedly claimed the increased rent would help its good-faith efforts to refinance its mortgage.

From there, a tug of war over the rent allegedly emerged. The production paid the rent in full the first year, but threatened to leave the lease when Centaur demanded the rent in full the following year. Centaur reversed course, according to the suit, then once again flip flopped and demanded full rent payment in January, according to the suit.

In a statement, Centaur said, “We refute the claims made as they are unfounded and do not accurately reflect our commitment to fulfilling our financial obligations as the owner of the premises.” A representative of “Sleep No More” declined to comment to Crain’s.

The production, an immersive take on “Macbeth,” typically puts on eight shows a week. It has occupied the site of the McKittrick Hotel since 2010. The production is slated to close this year, but has repeatedly pushed back its final performance, which is scheduled for May 27.

— Holden Walter-Warner

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