House of Blues Goes Back on the Market
Back in September we noticed that the House of Blues was on the market for $19,120,000. Guess that high price tag kept away interested buyers, as it stayed in the possession of Live Nation. But just as Liberty Media Chairman John Malone is advocating taking Live Nation private, in order to "settle down and consolidate operations," those 61,876 square feet in Victory Park just hit the market again.
I see on LoopNet that Marcus & Millichap is now repping the property, which has come down in price just a wee bit since last fall -- to $18.5 million. House of Blues, of course, isn't planning on going anywhere: Its lease runs for another 10 years or so, and Live Nation would lease back the property from whoever winds up with the land, which is presently on the tax rolls for $2,371,570. An old friend in commercial real estate says, sure, there's a lease now, but "there's a giant risk, because if House of Blues leaves, who do you replace that with?" Me, I'm saving up for the all-nudie joint going for $3.25 million.
Update: A Friend of Unfair Park notes in the comments that the tax-roll reference above only refers to the "business personal property (BPP) value" and that I "missed the commercial taxable value, which is $12 million. The second account is the real estate. Together they make up the total value of the operation -- $14,089,730. So to clarify, it's on the tax rolls for 76% of asking price, and remember you can ask anything."