House of Blues Goes Back on the Market

Categories: Music, Real Estate
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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."

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22 comments
nhale
nhale

Had to point out here that you only mentioned the business personal property (BPP) value - that's the furniture and equipment inside - on the tax roll. You 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.

http://www.dallascad.org/AcctD...

Cowtown
Cowtown

I just hope the new owner keeps booking a constant stream of cover bands.

Jess
Jess

I've got $20 bucks! either as a minority owner or a patron. On a good night I might have many $20 bucks. Oh how I miss the bull market and auditless expense accounts.

Diane Birdwell
Diane Birdwell

Maybe if they played more BLUES there, they wouldn'[t need to sell it.

lorlee
lorlee

They want $18.5 and it is on the tax rolls at $2.3 -- and we wonder why the City is in trouble.  My house appraisal is and has been for most of my tenure much closer to 100% of what I might be able to sell it for.  I am tired of subsidizing the corporate sector.

LaceyB
LaceyB

Isn't $3.25 the average take-home for being a journalist these days? Just no chintzy strobe light shows, okay? Shine 'em bright on the money shot area--well, unless it's more of a titty joint...

Wylie H.
Wylie H.

Ah.... thanks for the clarification.  That's much more reasonable!

Jay
Jay

At the House of Blues, that $20.00 will get you a beer and a half.

Gin
Gin

Maybe if they knew what BLUES is... they could play more blues.  The problem with BLUES, today, is... most of the public doesn't know what blues is... and, certainly, the talent buyer could care less what real blues is.  There ya have it.   No BLUES, you lose.

Parker
Parker

Do any of you know how to read?

The property is not UNDERvalued by DCAD.  It is OVERvalued. 

It is valued at $2.3M by DCAD.  That means they are paying taxes on $2.3M.

However, at this time it is not able to sell for $19M.  Now the owner is trying to sell for $18M. 

Notice how the owner is trying to sell for LESS than the value on the tax rolls.

Learn to read and comprehend.

Ardy
Ardy

There is a real possibility that they have extremely overvalued the property. But I get your point, because even if it's worth half of what they're asking (which is likely), it's still quite undervalued on the tax appraisal. 

Wylie H.
Wylie H.

Very well said.  Do you have any sense as to whether or not other cities in Texas under-appraise commercial real property to the extent it occurs here in Dallas County?

I suggested to Angela Hunt awhile back that the City of Dallas should hire someone to contest a lot of these egregiously under-valued commercial properties--- the City would make back the cost of these employees on correcting just one of these massively under-valued properties--- all the rest would be gravy to the City of Dallas.

nhale
nhale

To clarify, the property is valued by DCAD at $14,089,730. The blog post is incorrect.

Montemalone
Montemalone

Three words: M L S

Residential sales prices become basically public records.Commercial sales prices are seldom disclosed.

And the commercial owners already hire teams of lawyers to fight DCAD to get valuations reduced even more.

Montemalone
Montemalone

Wish he'd share, must be pretty good stuff.

Anonymous
Anonymous

That's not true from anything that I can find on DCAD. Link?

nhale
nhale

To clarify, the property is valued by DCAD at $14,089,730. The blog post is incorrect. 

Wylie H.
Wylie H.

Understood... that should explain some of the discrepancy.  However, what we regularly see is commercial properties that appear to be valued by DCAD at a discount of 40 - 90% to market value.  That isn't just appraisal difficulty--- it's outright fraud against the taxpayers.  An appraiser in private practice who missed the mark by such a large amount wouldn't be in business long.

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