State Theatre for sale

posted by redmcmonagle on June 19, 2008 at 7:55 am

HUTCHINSON, MN — 3 Screen Movie Theater, 4 Luxury Lofts and 2 Retail Rental Units $1,700,000

This Art Deco Gem was built in 1937 and totally renovated for re-opening in 2005. The Minnesota Preservation Alliance awarded The State with the 2006 Preservation Award, and the cover photo on the award magazine. This has to be the finest privately funded theater renovation in the state.

Business has been growing in double digits, and profitable since opening. Virtually everything is brand new from the foundation up. The Cap Rate is 5.33 today, and will be over 6.0 by year end. The renovation was done with the highest quality materials and workmanship. It is truly a thing of beaty and functionality. It looks like a treasure from the past with high-tech infrastructure. Almost $2,000,000 was invested on the renovation. The 3 auditoriums seat over 625 people and the entire facility is 100% ADA compliant. All state of the art compoments and totally digital DTS sound. The primary presentation is 35mm film but 2 auditoriums are equipped with high-res digital projection for business meetings and other events. There is over 5,000 feet of neon and colored lights in and outside the building. Original murals have been recreated in the Main auditorium.

Eight apartments were razed and 4 luxury lofts were created. All have new appliances including their own washer and dryer. Three units have roof top decks, and 2 have views of Library square across the street. One retail space is occupied and the other is waiting for specifications for a potential tenant.

Very significant tax advantages are provided by TIF refunds and depreciation expenses afforded by the amount invested in the renovation. Based on the investment and appraisal, versus the asking price, a buyer would be virtually purchasing the property at a very fair price and getting a profitable business for free. The price includes all real estate, theater equipment and profitable business.

Hutchinson offers smaller city living with the Twin Cities and the Mall of America just over an hour away.

The property is 100% renovated and is in excellent condition. Square footage is 29,370 and the lot is 12,450. The building is 2 stories. The apartments vary in size from about 800 to 1200 sq ft. The building was built in 1937 and renovated for re-opening in 2005. All leases are annual. All HVAC, electrical, plumbing, roof, windows…. everything is new

Competition: One of 2 theaters in Hutchinson, the other is a 9 screen first run theater. We are the only 2nd run theater in the county and the 2 neighboring counties. The nearest second run is over 50 miles away. In any economic conditions, but especially in the current economy, the “family friendly pricing” offered on admissions and concessions is well received. Per capita food sales are above average Marketing is done via a number of papers in McLeod and Meeker county. There is a very well done, and extremely active web site.

Growth/Expansion: Business in terms of attendance and revenue continue to grow in double digits. The future looks equally as bright. Business can be expanded by introducing on-screen advertising, marketing business meetings and special events at a higher level and acitvely seeking a tenant for the vacant retail unit.

Support/Training: The owners are open to assisting the buyer in a transition, time to be negotiated. The owners will also consider employment by the new owner for a short period of time.

Reason Selling: Retirement

An information packed 10 page PDF format flyer is available for download

Contact Red McMonagle – for more information or a copy of the PDF flyer to serious potential buyers, please.

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