The landlord of a popular SoHo restaurant is trying to force the eatery to exit its longtime Thompson Street home early as part of a scheme to sell the building at a healthy profit, a lawsuit from the restaurant claims.
Pera Soho, a Mediterranean restaurant at 54 Thompson St., sued its landlord, SME Capital Ventures, Thursday in Manhattan state Supreme Court. The eatery argues that SME, which took control of the property in June 2023, has since engaged in a “coordinated campaign of harassment” against Pera Soho to get it out of the building that includes dumping loose trash bags in front of the restaurant, allowing the basement to repeatedly flood and misappropriating roughly $366,000 in real estate tax payments.
The restaurant also claims in the lawsuit that is has not had a functional fire alarm system since April and has been dealing with a broken air conditioning system for more than eight months after SME allegedly refused to pay the HVAC technician more than $20,000, causing him to stop working on repairs. This was particularly disruptive during “the crucial summer tourist season” and sparked multiple cancellations and bad reviews, according to the lawsuit.
And the landlord has allegedly failed to deal with excessive noise from other tenants that has sparked police visits — ones that frequently end with Pera Soho getting “incorrectly blamed for the disturbances,” the suit says.
Pera Soho also claims SME has allegedly been overcharging it for rent since July and trying to shorten the length of its lease. The restaurant inked a 15-year deal for its space at 54 Thompson St. on July 15, 2011, but the lease did not officially kick in until after a seven-month period of free rent, according to the lawsuit. That means the lease should expire Jan. 31, 2027, but SME has been claiming it ends June 30, 2026, it says.
Pera Soho reached out to SME multiple times about making the necessary repairs to the restaurant before filing its lawsuit, but these requests were either ignored, denied or left unfulfilled despite promises to the contrary, the suit claims.
SME, a Manhattan-based investment firm run by Max Belinsky and Eran Silverberg, told Pera Soho in July 2023 that it had effectively taken over 54 Thompson St. after foreclosing on a loan held by the prior landlord, although the firm has yet to provide the restaurant with official documentation of its ownership, the suit says. Pera Soho’s leadership has also never had any in-person interactions with SME apart from “a brief introduction” to Belinsky in July 2023, and no deed has appeared in property records confirming a sale, the suit says.
Pera Soho is suing SME for breach of contract, negligence and harassment, in addition to other claims. It is seeking at least $530,000 in damages, a judgment from the court confirming that its lease expires Jan. 31, 2027, and a requirement for SME to make essential building repairs.
Silverberg of SME dismissed the lawsuit in an email to Crain’s as a “retaliatory action” meant to strong-arm SME into extending the restaurant’s lease at a below-market rate. The company has concerns about Pera Soho’s food safety, storage and sanitation practices, he said, and recently asked the restaurant to make some improvements in these areas before it agrees to an extension.
“If photos of food prep areas were revealed publicly, patrons would be frightened,” Silverberg alleged to Crain’s. (The firm has not yet filed an official legal response to the lawsuit.)
Eric Sherman, an attorney for Pera Soho, vigorously defended the restaurant’s health and sanitation practices, claiming that SME’s accusations were an attempt to deflect attention from its own alleged misconduct.
“Pera Soho maintains exemplary health and sanitation standards, as independently verified by consistently high Department of Health ratings,” he said.
