The dispute spilled outside onto West 38th Street, where the three were shot around 10:30 p.m.
Police say a 27-year-old man was shot in the stomach and a 24-year-old man in the torso. Both were found outside the performance space.
A 19-year-old man was found shot in the leg on East 37th Street and Madison Avenue.
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All three were taken to Bellevue Hospital with non-life-threatening injuries.
The 27-year-old man and 19-year-old man wounded in the gunfire are also being eyed as suspects in the shootings.
A third person, a 17-year-old male, is also in custody, and at least three guns were recovered at the scene
Police say the 17-year-old has a pending case for allegedly shooting someone in 2019 in Brooklyn and a separate sealed gun arrest from when he was 14.
The other two suspects also have criminal records, and one police official said the shooting appeared to be Brooklyn north gang violence transplanted to Midtown.
Authorities say innocent bystanders were also caught in the crossfire, but luckily, none were struck.
"It probably wasn't until we got back to the hotel when I went -- holy crap what did we just experience," eyewitness Eric Sinkovec said. "All of a sudden there's gunshots -- people were running, screaming kinda just got mixed up in the chaos."
Sinkovec, who's here for business and staying around the corner, found himself corralled by police, with other witnesses, on the sidewalk.
"I don't know. You don't want to stop living life or say -- oh I'm never gonna go back to New York because of one experience when the other 20 have been great," he said.
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For months, cops have grappled with a rise in gun violence in every borough, blaming bail reform for eliminating many consequences to lawlessness.
In this case, cops were on the scene in seconds and arrested the shooters.
All the victims are believed to have been targeted.
The venue was hosting a rap performance that also may have included the recording of a rap video, which was promoted on social media.
Police were interviewing dozens of people who were inside the space at the time of the shooting.
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