On September 28, 2009, Northeast Shores purchased the LaSalle Theater and Tavern after several years of negotiations.
Northeast Shores initially became interested in buying this block of East 185th Street when the properties entered foreclosure in 2006. At that time, Northeast Shores attempted to purchase the properties from the former owner but was unable to complete the transaction before the foreclosure proceeded. The previous owner attempted to retain title to the properties but eventually the foreclosure proceedings were successful and title reverted to the mortgage holder, Parkview Federal and Savings.
Following standard company policy, Parkview Federal proceeded with eviction proceedings of the commercial and residential tenants in the property. Some of these tenants were sad to leave the East 185th Street Business District and Northeast Shores made attempts to relocate one of these tenants to a space farther north in the district.
Upon vacancy, Parkview Federal put the property up for sale and entertained several offers for the property. Northeast Shores bid on the property at less than half of the asking price and waited months as Parkview Federal vetted through other offers that did not culminate in a sale.
In the meantime, rumors that Parkview Federal intended to demolish the theater became deafening when Parkview Federal proceeded with seeking a demolition bid and inquired to the City of Cleveland Building and Housing Department about the process for seeking a demolition permit. Councilman Mike Polensek stepped in and had the theater declared a local landmark to prevent the demolition of the theater.
Upon local landmark status, Parkview Federal reduced their asking price and Northeast Shores was able to strike a deal to acquire this key property. It still took several months to secure acquisition financing, given the building’s vacancy and uniqueness as well as the current lending environment. Thankfully, Village Capital Corporation stepped to the plate and offered to provide the financing for the purchase.
While the theater and tavern are now in safe hands, the saga continues. Northeast Shores needs to renovate and retenant the building. To do this, Northeast Shores must raise significant grant and loan funds to bring the theater back to its historic grandeur.
We are excited about undertaking this difficult redevelopment project. Once restored, the LaSalle Theater can continue to be an anchor and landmark for future generations on East 185th Street. Pick up future issues of the Collinwood Observer or check out the blog on the Northeast Shores website for future chapters as this project continues to evolve and develop.