North Shore Music Theatre Foreclosure Auction – October 2, 2009

Posted by admin
September 30, 2009
BEVERLY — The high bidder for the North Shore Music Theatre could be anyone from an artistic company intent on reviving the theater to a bank looking to recoup its money, according to people interested in the property’s future.
The theater’s fate will be determined Thursday, when a foreclosure auction is scheduled for 1 p.m. on the site of the former theater on Dunham Road.
Auctioneer Dan McLaughlin said he has spoken with “a number of groups” who have shown interest in the property.
“But you never know until you see who shows up with a check,” he said.
The auction is being held by Citizens Bank, which holds two mortgages on the property totaling about $5 million. Bidders will be looking to buy 26 acres of land and three buildings, including the theater-in-the-round that hosted musicals and shows for 55 years before it went out of business in June.
David Fellows, the theater’s former board chairman, said at least four arts organizations are trying to put together business plans that would allow them to buy the property.
All four are from New England, including one from Massachusetts, he said. He declined to name them.
One Boston-area theater executive said it would be difficult for most Massachusetts theater companies to buy the property, which is assessed by the city at $12 million, although the sale price could be much less in a down economy.
“It’s a sizable venture, and they all have their own operations already in existence,” said Jeffrey Poulos, executive director of StageSource. “My suspicion is that it would have to come from either out of state or some developer not currently in the business of theater.”
One possibility is that Citizens Bank, which holds the first mortgage on the property, submits the highest bid if the other bids are not high enough. The bank could then negotiate a sale privately.
The theater also owed another $5 million to subscribers and vendors, but that is unsecured debt that won’t be repaid unless the auction sale nets enough money, according to Fellows. More than 4,000 people who paid for tickets for the 2009 season lost money when the season was canceled.
Poulos, of StageSource, said he hopes to property remains a theater in some form.
“My hope is that somebody will see value in bringing a cultural institution to that part of the state,” he said. “With the loss of North Shore Music Theatre, there’s now a void for arts and entertainment in that area.”

BEVERLY — The high bidder for the North Shore Music Theatre could be anyone from an artistic company intent on reviving the theater to a bank looking to recoup its money, according to people interested in the property’s future.

The theater’s fate will be determined Thursday, when a foreclosure auction is scheduled for 1 p.m. on the site of the former theater on Dunham Road.

Auctioneer Dan McLaughlin said he has spoken with “a number of groups” who have shown interest in the property.

“But you never know until you see who shows up with a check,” he said.

The auction is being held by Citizens Bank, which holds two mortgages on the property totaling about $5 million. Bidders will be looking to buy 26 acres of land and three buildings, including the theater-in-the-round that hosted musicals and shows for 55 years before it went out of business in June.

David Fellows, the theater’s former board chairman, said at least four arts organizations are trying to put together business plans that would allow them to buy the property.

All four are from New England, including one from Massachusetts, he said. He declined to name them.

One Boston-area theater executive said it would be difficult for most Massachusetts theater companies to buy the property, which is assessed by the city at $12 million, although the sale price could be much less in a down economy.

“It’s a sizable venture, and they all have their own operations already in existence,” said Jeffrey Poulos, executive director of StageSource. “My suspicion is that it would have to come from either out of state or some developer not currently in the business of theater.”

One possibility is that Citizens Bank, which holds the first mortgage on the property, submits the highest bid if the other bids are not high enough. The bank could then negotiate a sale privately.

The theater also owed another $5 million to subscribers and vendors, but that is unsecured debt that won’t be repaid unless the auction sale nets enough money, according to Fellows. More than 4,000 people who paid for tickets for the 2009 season lost money when the season was canceled.

Poulos, of StageSource, said he hopes to property remains a theater in some form.

“My hope is that somebody will see value in bringing a cultural institution to that part of the state,” he said. “With the loss of North Shore Music Theatre, there’s now a void for arts and entertainment in that area.”

Foreclosure Auctions, MA Foreclosure Auctions, Massachusetts Foreclosure Auctions

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