Selling music venues for real estate value

Live Nation has been trying to sell off some of its music venues -- primarily the ones that are worth more as real estate than as a venue. But there have no offers for the Verizon Wireless Music Center in Indianapolis.

The beat goes on at Verizon center -- Indianapolis Business Journal, 6/9/07: Live Nation is interested in selling only for redevelopment, not to another promoter, said Gary Bongiovanni, editor in chief of Pollstar, a trade publication covering the concert industry. Bongiovanni expects the company will be willing to wait to get its asking price, which local brokers say is about $100,000-per-acre too optimistic.

So far, Live Nation has sold an amphitheater in Nashville, Tenn., and is exploring the sale of others in Columbus, Ohio, and Tinley Park, Ill. In a phone message, a corporate spokesman said no transaction has taken place for Verizon Wireless Music Center in Noblesville. A local CB Richard Ellis broker who is marketing the property did not return phone messages.

'Maybe they keep Indianapolis because they can’t find anybody to come up with the money,' Bongiovanni said.

The sale strategy is designed to generate cash for a company that has struggled since its 2005 separation from San Antonio-based Clear Channel. Another reason is a changing concert industry. These days, fewer acts sell enough tickets to justify shows at large venues such as Verizon, which has 6,000 reserved seats and room for up to 18,000 on the lawn.

Amphitheaters also provide only seasonal revenue and don’t offer the tiered, high price seating potential of enclosed venues. Smaller concert venues are in, and Live Nation is betting on that business. In Indianapolis, Live Nation manages shows at the Murat Centre and the Lawn at White River State Park."