We looked at a property today, it had been a 800 seat theater in the 30's. At some point after it had closed someone made the room a over/under leaving the upper part as an attic almost. It was very cool to see, all the old molding and design was still there including a projection booth with 3 projectors and the balcony seats still in place. Under this they divided it up into a few offices which are no longer occupied. The builder we went with put a quick estimate on the total renovation in the 1 Million dollar range. That includes gutting the building. That doesnt include screen/equipment/concessions. This building is right on the main street with a 15 mile population of 150,000-200,000. Only 8 screens (1 regal theater) of competition in the area. I think if it were gutted we could put in 2 screens that have 200-250 seats and one with 100 seats. Additionally we would have a room with its own entrance to a busy side street that could become a small cafe.
With a ROI of 5 years and tickets priced at 9 dollars with a per cap of 2.30. A quick estimate puts me at 3500 customers per week to reach a suitable gross income for the year.
Should we just turn and run the other way and start looking for a a property that requires less build out? Or does it look possible?
thanks,
B
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