McDonald Dodges Foreclosure

Eugene, Ore.’s McDonald Theatre was threatened with foreclosure for about a week because property owner Geiger Investments was late on its loan payments, which the company made May 2nd.

Venue operator Kit Kesey told Pollstar the situation was worrisome, but he had a plan to keep the 71-year-old theatre running if Geiger hadn’t come through.

“I had put an offer on the building and I was prepared to buy it if it came up,” he said. “I was willing to back up whatever happened with myself financially, as far as people being on the hook.

“[But] I was really comfortable that my lease would stand no matter what happened and I was in a position to purchase it if it came up for foreclosure.”

The Eugene-based real estate company, which purchased the theatre in 1997 for $1.3 million, borrowed $1.63 million from BLX Capital in 2005 and used the McDonald as collateral. BLX later sold the loan to SPCP Group, according to The Register-Guard of Eugene.

SPCP Group started foreclosure proceedings in April, and prepared to put the McDonald on the auction block in June, after Geiger fell three months behind in payments.

Meanwhile, Kesey’s business was put on hold as Geiger’s financial situation was being worked out.

“Aggressively going out and seeking acts and booking shows was uncomfortable given the situation,” he said. “This had nothing to do with me and my operation. This was strictly with the investment company that owns the real estate.

“[But] we’re back to the status quo and I’ll continue doing business as we have been.”

Concerts on the books through mid-May include Billy Currington, Switchfoot, and In Flames, to name a few.

– Tina Amendola