Tuesday, September 29, 2009

Northeast Shores purchases LaSalle Theater and Tavern

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.

5 comments:

Denise said...

I am so glad that something good has come of this. Personally, I would love to see it used as a theater!

Picture said...

I can only say, where is everyone going to park? I believe this property will eventually go the way of the commodore. This old theater has out lived it's day as a theater.

In it's heyday people used streetcars and bus's to get to it or just walked to it and parking wasn't a issue, today people drive to the corner store.

Then there is the issue of one screen, this property would have to become a multiplex to even think about competing and then there is the parking problem once again.

NES I would think bit off more than it can chew with this project.
I would have much rather seen them use the money to renovate the property they have on the side streets along the marginal that are boarded up that could become housing which is their real business and keep there books in the black.
NES could take some lessons from the Detroit group and Gordon Square projects to get a handle on how to make a neighbor hood click.

Nick said...

The Capitol Theater was just rehabbed on the west side of Cleveland in the Gordan Square district..I used to go to the Lasalle a lot as a kid to see movies and every body parked on the many side streets there. They are not looking to rehab the LaSalle to compete with huge multiplexes! That would be dumb! The Capitol is only one Screen! What about accepting the fact that maybe the theater can be another Cedar-Lee to run mostly independent movies? There is nothing wrong with that because it might attract a whole different clientèle and MAYBE boost business at neighboring businesses and just MAYBE(i am not saying a movie theater is make or break) people might want to move nearby and try to revive E. 185th into a very cool destination like the Tremont and Ohio City areas of Cleveland..You just never know...We just shall see i guess!

marybethmott said...

I for one am very happy that the LaSalle Theatre has been declared a historic landmark. It's so easy for everyone to knock down old buildings instead of restoring them. Anyone remember Henn Mansion in Euclid? An old run down building has now become a beautiful mansion that we can enjoy for years to come. Kudos to Mike Polensek for stepping in once again.

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