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@rosiet: Try Trattoria Trecolori in the theater district, they have a nice private room upstairs and prices are right in the range you mentioned.
I can recommend Stella Maris in the Seaport - we had our rehearsal dinner there and everything (food, service, decor) was great. We had just under 50 guests and they gave us the whole restaurant; you you might be able to negotiate that with 40 as well but they also have a private room. I can't remember exactly what it cost, but it was by far one of the most reasonable options of the 20-plus places we called in the city, and the food really was delicious. You could also try Il Brigante right across the street in the Seaport - that was a bit more expensive and you have to rent out the whole restaurant (it's small though), but also has great food and was the second most reasonable place we found. Good luck!
@Salsals: Which other places did you consider downtown for your rehearsal dinner? Thanks!
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Anybody have a recommendation for a NYC restaurant for a rehearsal dinner? Private/semi-private room preferred, for 30-40 guests. Looking to pay about $30-$35 per person excluding alcohol. Preferably in the midtown area, but open to other areas of Manhattan.
Thanks!