'The End' for Metro Cinemas May Be Office Space

SEATTLE, WA-Times change, as most everyone in commercial real estate knows. As a January court date approaches, change is facing operators and patrons of the 10-screen Metro Cinemas in the University District, as they learned from a “Change of Land Use” sign posted on the premises – it notified the company that landlord Dennis Loeb has asked the city for permission to turn the space into offices.

The application asks for the city’s go-ahead to convert the theater into 41,000 sf of offices on two floors for an estimated renovation cost of $1 million. It’s not a foregone conclusion, however, only an alternative. Loeb appears to be merely securing his options in case his theater tenant goes out of business. The tenant has already asked for and received a drop in the rent.

Metro Cinemas is the largest of the nine-unit Seven Gables/Landmark chain, which may soon be sold off by owner Silver Cinemas International, which faces a bankruptcy hearing next week. The Dallas firm acquired 52 Landmark and 22 Silver Cinemas two years ago, then filed for Chapter 11 protection from creditors last May. Seven Gables/Landmark operates the Broadway Market, Crest, Egyptian, Guild 45th, Harvard Exit, Neptune, Seven Gables, Varsity and Metro cinemas.