• 0
  • Home
  • About Us
  • What We Do

Shopping Cart

GPAM
  • Home
  • About Us
  • What We Do

Erewhon vs. Midwood: Dueling lawsuits at Sportsmen’s Lodge

Erewhon's Tony Antoci, Midwood's John Usdan and Erewhon Studio City at 12833 Ventura Boulevard (Getty, Midwood, Facebook/Tony Antoci, Erewhon)
Erewhon’s Tony Antoci, Midwood’s John Usdan and Erewhon Studio City at 12833 Ventura Boulevard (Getty, Midwood, Facebook/Tony Antoci, Erewhon)

Weeks after the owner of the Shops at Sportsmen’s Lodge development in Studio City filed a lawsuit against tenant Erewhon claiming it failed to pay rent, the luxury grocery store has hit back with its own allegations.

Erewhon filed a countersuit against Midwood Investment and Development last week, alleging the firm omitted facts during lease negotiations, improperly increased rent, denied access to parking and changed plans for the development since it was entitled in 2019.

“This is the story of a New York developer engaging in a calloused, and illegal, bait-and-switch scheme to dupe its tenants,” Erewhon wrote in its cross-complaint.

“We strongly disagree with Erewhon’s allegations,” a representative from Midwood said, adding it was “simply a commercial lease dispute.” Erewhon declined to comment.

In its filing, Erewhon claimed Midwood promised the grocery chain, known for its $20 smoothies and celebrity clientele, would serve as the anchor for the retail complex in 2017, shortly after it acquired the property from developer Richard Weintraub.

After community opposition and a legal battle with Midwood, Weintraub agreed in 2017 to sell Midwood the land around the historic Sportsmen’s Lodge, which had already been entitled for retail.

Shortly after Midwood acquired the land, it started pursuing Erewhon. But, Erewhon alleged, the complex already had an anchor tenant: Equinox, the luxury gym known for eucalyptus towels and $500-a-month memberships. Back in 2011, Equinox had already agreed to a lease at the yet-to-be-built property.

During negotiations, Midwood “omitted key details,” including the terms of Equinox’s deal, “to induce Erewhon into a lease,” the grocery store said in its cross-complaint. Because of this, Midwood did not act in good faith and breached its commitment to Erewhon, it claims.

Midwood also improperly raised rents under the lease before Erewhon even opened its store, and after construction delays had pushed back the opening of the entire development, the countersuit alleges.

Erewhon paid at least $5 million in construction costs, plus a further $1 million in rent and associated fees, expecting an opening date of March 2021, according to the filing. Midwood “failed to open on that date” and “arbitrarily selected” a new date of December 2021 to force Erewhon to start paying rent, the filing states.

One of the other key details Midwood allegedly omitted during negotiations was the availability of parking — a key provision that Erewhon said was a “material factor” in deciding to enter a lease.

“Erewhon is a grocery store [and] grocery store customers need to be able to take their groceries to their cars,” Erewhon wrote. “Everyone knows that.”

Since Erewhon opened its store earlier this year, Midwood has cut off access to the parking lot closest to Erewhon and has reserved other parking spaces for Equinox members, the suit alleges. The closest parking lot to the grocery store also does not have wheelchair access, as it’s blocked by a curb.

Employees are now having to drive a mile to an off-site lot to park, according to a source familiar with the property.

In August of last year, as the Shops at Sportsmen’s Lodge was working to open, Midwood announced it was planning to raze the entire hotel at the site and replace it with new apartments — a development Erewhon says it didn’t know was coming.

During initial lease negotiations in 2017, Midwood gave the “impression that the hotel would remain unaffected by the center’s construction,” according to the cross-complaint.

Erewhon is worried the parking situation will get worse while construction proceeds, meaning fewer people will be able to visit its Studio City location.

“The construction will take several years to complete,” it said in its cross-complaint, “[and] will have detrimental and wide-ranging effects.”

Read more
  • Sportsmen’s Lodge Hotel redevelopment catches environmental endorsement
  • Owner of Sportsmen’s Lodge plans residential redevelopment
  • Hackman inks Erewhon market to space at Culver Steps
[contact-form-7 404 "Not Found"]

The post Erewhon vs. Midwood: Dueling lawsuits at Sportsmen’s Lodge appeared first on The Real Deal Los Angeles.

Powered by WPeMatico

  • 18 October 2022
  • The Real Deal
  • Uncategorized
  •  Like
Onni Group to build Art Deco-style tower in Mid-Wilshire →← Lincoln Property quits San Bernardino mall redevelopment
  • Recent Posts

    • Hoteliers sound the alarm on looming distress  May 24, 2025
    • Growth markets see retail boom even with tariff uncertainty May 24, 2025
    • Westchester resi project gets city OK after union drops objection May 23, 2025
    • WATCH: ‘Father of CMBS’ Ethan Penner to run for governor of California May 23, 2025
    • Fashion Island office fetches $756 psf May 23, 2025
  • Recent Comments

    • Archives

      • May 2025
      • April 2025
      • March 2025
      • February 2025
      • January 2025
      • December 2024
      • November 2024
      • October 2024
      • September 2024
      • August 2024
      • July 2024
      • June 2024
      • May 2024
      • April 2024
      • March 2024
      • February 2024
      • January 2024
      • December 2023
      • February 2023
      • January 2023
      • December 2022
      • November 2022
      • October 2022
      • September 2022
      • August 2022
      • July 2022
      • June 2022
      • May 2022
      • April 2022
      • March 2022
      • February 2022
      • January 2022
      • December 2021
      • November 2021
      • October 2021
      • September 2021
      • August 2021
      • July 2021
      • June 2021
      • May 2021
      • April 2021
      • March 2021
      • February 2021
      • January 2021
      • December 2020
      • November 2020
      • October 2020
      • September 2020
      • August 2020
      • July 2020
      • June 2020
      • May 2020
      • April 2020
      • March 2020
      • February 2020
      • January 2020
      • December 2019
      • November 2019
      • October 2019
      • September 2019
      • August 2019
      • July 2019
      • June 2019
      • May 2019
      • April 2019
      • March 2019
      • February 2019
      • January 2019
      • December 2018
      • November 2018
      • October 2018
      • September 2018
      • August 2018
      • July 2018
      • June 2018
      • May 2018
      • April 2018
      • March 2018
      • February 2018
      • January 2018
      • December 2017
    • Global Property and Asset Mangement, Inc.
      137 North Larchmont
      Los Angeles, California 90010
      +1 213-427-1127

    © 2025 GPAM