SOUTH BEND, Ind. (AP) - A nearly century-old theater in northern Indiana that originally showcased vaudeville acts is back on the market only a few years after it was purchased by its current owner.
Assaf Dagan, president of Mishawaka-based Banko Capital, said he bought The State Theater in downtown South Bend out of foreclosure in December 2011 after falling in love with the 42,000-square-foot, three-story building.
He said he’s put it up for sale for about $1.5 million because he hopes a new owner, developer or business partner can take the building, which is listed on the National Register of Historic Places, to the next level.
“I feel I did what I could to help bring it back to its glory from the past. Now we need someone local, someone in the market, to put more effort and time into it,” he told the South Bend Tribune (https://bit.ly/1JdHQ1L )
The historic building includes the theater space as well as commercial space rented by a bookstore, a brewery and a textile boutique. Two upper floors contain vacant office space that could be converted into condos or apartments.
The State opened in 1921 as the Blackstone Theatre Vaudeville House and was renamed The State in 1931. It operated as a movie theater before closing in 1977. The State later reopened as a nightclub and was shut down in 2005 due to foreclosure.
A year later, a nonprofit group tried to turn The State into a Christian-focused cultural arts center, but that effort also failed and the building again fell into foreclosure.
The city of South Bend invested $250,000 in the theater’s facade and awnings, marquee and roof improvements, and a local crowdfunding campaign raised money toward restoring and lighting up the marquee.
When Dagan purchased the building it was during tough economic times, but now the economy “is much more favorable to different buyers and there is available financing,” said John Jessen, commercial broker and director of capital markets at Bradley Co., which has listed the building.
One of the biggest challenges for a potential partner or buyer is the financial investment that will be needed for renovations to the building. A new owner would need to invest in plumbing and heating, ventilation and air conditioning repairs, as well as other interior and exterior improvements.
Depending on the amount of restoration and extent of remodeling, Dagan estimated the work would cost between $1.5 million and $2 million.
___
Information from: South Bend Tribune, https://www.southbendtribune.com
Please read our comment policy before commenting.