Landlord plans to convert ex-Studio 4 building in downtown Ann Arbor to office space
Photo posted on the Dream Nite Club Facebook page shows a line outside of the bar on what appears to be its Sept. 2 opening.
Source: Facebook
Ann Arbor’s newest office space may be the building occupied in recent years by Studio 4, the troubled bar on South Fourth Avenue that’s caught in multiple lawsuits.
After a quiet name change and opening party Sept. 2 as Dream Nite Club, the owners of the business now face eviction for nonpayment of rent, said landlord Dennis Serras.
And Serras - a partner in the multistate Mainstreet Ventures restaurant group, based in Ann Arbor - is now exploring converting the 8,184-square-foot building at 314 S. Fourth Ave. into a new use, such as offices.
“I’d love to get the bar out of there and get a (different) use in there,” Serras said.
That decision was prompted in part by the announcements of two recent downtown office deals for nontraditional space: Second to None, which is moving into the former Sweet Lorraine’s restaurant in Kerrytown, and the University of Michigan architecture school, which just leased a commercial building in Liberty Lofts.
It also follows a summer of litigation among the various entities connected to the property, which is owned by the Dean Zahn Properties LLC of Saline. Serras has a long-term lease on the building and once operated Maude’s Restaurant there.
An entity called Papa Chulo's Inc. sublet the building, eventually turning it over to VR Entertainment, which operated Studio 4. Papa Chulo's, managed by Demos Panos, retained ownership of the liquor license.
Serras got a $52,754 judgment against Papa Chulo's, which in turn sued VR Entertainment and received a judgment for $324,890. And now VR Entertainment is suing Papa Chulo’s for wrongful eviction, while lender Monroe Bank & Trust seeks to take control of the liquor license because Papa Chulo's owes the bank $151,000 on a loan in default.
The litigation is complicated. But the bottom line, Serras said, is that VR Entertainment no longer has access to the liquor license, and thus can’t operate as a bar.
“I’m not getting any rent,” Serras said as a result.
VR Entertainment had signed a new lease with Serras after the Papa Chulo's eviction, he said. That deal was based on a business plan that the operators sent to Serras, reflecting increased security in the bar. City officials also had filed suit against the club, citing public nuisance issues.
“They were really going to attempt, by the way they talked, to open something better than what it was,” Serras said.
Attempts to reach VR Entertainment or attorney James Cmejrek were not successful. The phone number at Dream Nite Club has been temporarily disconnected, according to a recording.
And the club’s Facebook page - which touted its Sept. 2 opening - hasn’t been updated since Sept. 8, after 57 photos of what appears to be the opening party were posted over three successive days.
Demos Panos did not return a call seeking comment.
Meanwhile, Serras is talking to local real estate experts about converting the space, which is larger than many floor plates available downtown.
The recent deals for tenants who wanted nontraditional office space “hopefully show some action coming back to downtown,” Serras said.
Comments
CynicA2
Wed, Sep 22, 2010 : 9:10 p.m.
Gee! Just what we need downtown - more empty office space. Better empty than that sleazy nightclub, though.
Chase Ingersoll
Wed, Sep 22, 2010 : 3:52 p.m.
Anyone for using it as a homeless outreach or needle exchange program? Sorry, I just couldn't resist tweaking NIMB liberals.
ShadowManager
Wed, Sep 22, 2010 : 12:27 p.m.
Top 5 Trendy A2 Businesses Du jour Probables for the Spot: 1) Medical Marijuana Dispensary. 2) Grow light / Hyrdoponic Store of #1 doesn't fly (which it won't). 3) Fast Casual Gourmet Cheeseburger Place. 4) Walgreens/CVS / Rite Aid. Must have one every square mile...cannot have enough EVER. 5) Who are we kidding? It's high priced lofts and parking, baby!
Paula Gardner
Wed, Sep 22, 2010 : 12:06 p.m.
Here's some explanation of the use of "floor plate" from a commercial real estate blog: http://blogs.marinij.com/realestate/
Jeff Renner
Wed, Sep 22, 2010 : 12:01 p.m.
"Floor plate?" That is a term I've never heard of in this context, and online definitions are of no help. Do you just mean it's bigger than most? It seems inappropriate to use an obscure term like this.
treetowncartel
Wed, Sep 22, 2010 : noon
Perhaps the second coming of Capitol Market?
Sarcastic1
Wed, Sep 22, 2010 : 11:54 a.m.
Hopefully, Fifth Quarter will be the next nuisance closed.
Jay Allen
Wed, Sep 22, 2010 : 10:19 a.m.
Maybe a CVS, Rite Aid, or Walgreens.
proudparent
Wed, Sep 22, 2010 : 10:07 a.m.
I agree with some sort of convience store. The bus terminal is there, and there isnt much for party stores around that area.
Speechless
Wed, Sep 22, 2010 : 9:43 a.m.
At the Studio 4 site, the various business and government entities involved, along with multiple, ongoing legal entanglements, together demonstrate the clear, straightforward simplicity found in a plot line from The Big Sleep. Third to Some?  As for Dennis Serras' vision of following in the footsteps of those who orchestrated deals for the Liberty Lofts and former Sweet Lorraine's locations, dream on.... Those other two locations, after rehab work, have enough on-site and neighborhood amenities such that one can imagine saying, "You know, it's kind of neat to come here to work." As for future offices at the old Studio 4, how many of us have longed all our lives to work right next door to the Ann Arbor's largest parking structure? Too bad that Monroe Bank & Trust will likely get possession of the liquor license, rather than a bank branch here in town. I'd love to see Fifth Third get its chance to square off against Fifth Quarter in a fractional fight.
townie
Wed, Sep 22, 2010 : 9:34 a.m.
Seems big enough for a Trader Joe's or something similar. How many square feet?
4 Fingers
Wed, Sep 22, 2010 : 9:28 a.m.
How about a super market? its surely big enough
Jay Allen
Wed, Sep 22, 2010 : 9:13 a.m.
Paula, in this case I know you are reporting the facts and for that Thanks! But the litigation process sounds like a triple reverse football play....... A hands the ball off to B, now B pitches the ball to C, C comes around the end and hands off to D........ The room is spinning!!! LOL
ShadowManager
Wed, Sep 22, 2010 : 8:36 a.m.
I think it would be great spot for medical marijuana dispensary! lol. out of the fire > into the frying pan...
kenUM
Wed, Sep 22, 2010 : 8:34 a.m.
@A2K, Lets hope they come up with a completely different paint scheme! @Jeffery, let's just bring Maude's back; I always thought that was decent enough, I'm sure that the Police would not mind having Maude's back.
Killroy
Wed, Sep 22, 2010 : 7:40 a.m.
Make the old Maude's Restaurant look positively inviting. What about a 7/11 or something like it that would cater to the bus station crowd?
A2K
Wed, Sep 22, 2010 : 7:04 a.m.
Someone will have to (again) repaint the hideous purple and orange facade on that building...what were they thinking? Ugh! It's like a south-of-the-border whorehouse/McD's/halloween USA.