Church Lawsuit Over Tenant Disputes

A place of worship isn’t always serene. The owner of a rental building in the East Village is taking legal action against the Christian Pentecostal Church that occupies part of it, claiming they have been leasing space to a “barbershop, bar, and nightclub,” as detailed in a recent lawsuit.

The management of the condominium complex at 183-189 Avenue B, which includes Hub Avenue B—a seven-story building with 40 rental units—and Elim House of Worship, a bilingual church on the ground floor, alleges that the church violated its contract. They failed to keep the board informed about its tenants and invited outside groups that host “unruly crowds and outrageous drinking activity,” according to a complaint filed in Manhattan Supreme Court.

The lawsuit contends that the church has developed a negative reputation for attracting disruptive crowds, allowing “loud and intoxicated patrons to gather both inside and around the condominium.” Despite ongoing complaints, the situation has not improved, as the complaint asserts.

Legal documentation indicates that church spaces are only allowed to serve “religious facilities with ancillary religious, charitable, or community purposes.”

The complaint highlights a shift in the church’s operations: “Instead of focusing on religious activities during the day, the tenants seem to run a commercial barbershop.” And after dark, these church spaces transform into makeshift “clubs” where large numbers of people drink and enjoy loud music.

In September, pastor Carlos Torres filed a lawsuit against his tenant, Real LES LLC.

“I had to go this route because they weren’t paying rent,” Torres mentioned, explaining that a one-year lease was supposed to be in place, but they allegedly altered it to five years without his knowledge.

Torres, who operates the church with his wife, Rev. Christine Torres, noted that Real LES LLC, led by Joquim Lugo and Christina Montanez, was supposed to return the keys by noon Tuesday—over a $15,000 settlement. By 3 p.m., they still had not done so, he said.

The pastor described Montanez as “very kind and polite” prior to the dispute, contrasting that with a shift in demeanor once the legal issues began.

Requests for comments from Montanez went unanswered.

Torres indicated that the church occupies about 15,000 square feet, which represents 25% of the property. The remaining 75%, or 66,000 square feet, is owned by Hub Realty.

Real LES LLC had signed a lease in October 2024 to use Elim’s 600-square-foot office on the first floor of 183-189 Avenue B for a monthly fee of $3,000, which Torres described as “just a donation to the church.”

Initially, he noted, “We rented out space to some visitors for package handling,” intending to serve the homeless through church activities. Instead, it appears that they have been “partying and smoking pot”—all without his consent, he remarked.

Torres expressed understanding for the board’s actions, led by Chairman Jared Rustbader, in considering a lawsuit against both the church and its tenants.

“He had to do what was necessary,” Torres said, admitting, “I have to protect myself. The truth is, I didn’t rent out space for parties; my intentions were to help.”

Requests for comments from Mr. Rustbader and his attorney were not returned.