Photos by Stacie Joy
At some point today, marshals are expected to seize the connected buildings at 78-80 St. Mark's Place, forcing owners and upstairs residents Lorcan and Genie Otway to vacate the property between First Avenue and Second Avenue ahead of a sale via a bankruptcy court.
As previously
reported, the Otways have been battling in recent years to save the space, which houses a 199-seat theater, the William Barnacle Tavern and the Museum of the American Gangster.
Per this December 2021 story in
The New York Times, Lorcan said that the theater, which his father bought and started in 1964, and its companion businesses were in good financial health until March 2020 and the start of NY State's PAUSE.
More background from the Times:
Shortly before then, he had taken out a $6.1 million mortgage against the properties to settle an inheritance dispute, pay legal fees and finance needed renovations.
With the pandemic lockdown and a precipitous decline in revenue, that loan went into default and was purchased by Maverick Real Estate Partners about a year ago. The firm, according to court documents, has closed over 130 distressed debt transactions, with a total value of over $300 million.
The
Times reported that the original lender later sold the debt to Maverick, which raised the interest rate from 10% to 24% without Lorcan's knowledge. The deficit reportedly ballooned to $12 million, and they filed for bankruptcy under Chapter 11
in December 2021.
Last night, EVG contributor Stacie Joy stopped by the former Prohibition-era speakeasy for — possibly — a last look at the historic East Village venue.
Lorcan, who has been at the address since age 9, was understandably angry and sad last evening about the pending eviction and the kafkaesque situation that has unfolded here since the start of the pandemic ...
After the space is padlocked today, we understand that the Otways will have a three-week window to raise the rest of the money owed... and hope for an angel investor.
New York City's Department of Cultural Affairs has also
reportedly supported the theater's survival efforts. The office has already expedited granting a tax-exempt 501(c)(3) status to Historic 80 Saint Marks Inc.
To date, more than 5,000 people have signed
a petition to save the space.