Dionysus Theatre Complex

But the bright lights of Broadway turned out to be too expensive for Mr. McCracken and his business partner, Randall O'Neill. Their venture, Dionysus Theatre Complex Inc., is a group of 21 rehearsal rooms available for rent.

They turned, instead, to the garment district, where an increasing number of small theater companies and rehearsal studios are beginning to sprout. A swath of city blocks from West 35th to West 41st streets, and from Sixth to Ninth avenues, this neighborhood has attracted no fewer than eight theater companies, seven within the past six months.

Some of these theater companies are startups; others are refugees from different parts of the city, including Times Square, which have become too expensive. Over the past several years, Times Square has evolved into an office district, displacing some small tenants and limiting the options for those that might otherwise have moved in.

Dot-com vacancies

The garment district's vacant warehouses, garment factories and former dot-com spaces are drawing theater people slightly southward. Many of the dot-coms that moved in during the tech bubble no longer exist. And the garment industry continues to shrink-it represents only 41% of the employment in the area. Theater entrepreneurs, seeking low costs, high ceilings and proximity to the big leagues, are snapping up the vacant spaces.

Dionysus is taking over 15,000 square feet that used to belong to Zar Industries, a defunct button manufacturer. Dionysus signed a 10-year lease in July for $17 a square foot at 519 Eighth Ave., at West 36th Street, and will open in March 2003. The Kaufman Organization owns the building.

Bargain hunters are finding deals in the garment district for as little as $13 to $25 a square foot, according to Christel Engel, a senior director at real estate brokerage GVA Williams, which represented Mr. McCracken. Comparable space near Times Square goes for between $28 and $40 a square foot.

The Zipper Theater, a 240-seat theater at 336 W. 37th St., was the first to discover the lower rents in the garment district, 17 months ago. But this past summer, the Abingdon Theatre Co., the Workshop Theater Co., and the Barrow Group, an acting school and theater company, signed 10-year leases at 312 W. 36th St., a former Consolidated Edison transformer station.

Close to tourists

At 344 W. 36th St., the Folksbiene Yiddish Theatre signed a lease for a 199-seat theater in June. The Revelation Theatre, at 334 W. 39th St., is opening in March. And the Genesius Guild moved to 520 Eighth Ave. in August.

Leslie Smith, founder of Revelation, says the decision to be in the garment district was simple. "It's more affordable, and it's close to a major tourist space." More theater companies are eyeing the neighborhood. Ms. Engel says she is showing space to at least two other theater rehearsal companies. There are plenty of buildings available.

As of October, the vacancy rate was 13.3%, down from 15.6% a year before, according brokerage Colliers ABR Inc. Colliers' definition of the garment district is West 31st to West 41st streets from Fifth Avenue to the Hudson River.

One concern that may dampen enthusiasm for the area is safety. The garment district becomes somewhat desolate at night. The Barrow Group is beefing up security after someone on the street threatened an employee, says Rick Silverman, the group's comptroller.

But the pioneer theaters are convinced of the area's long-term promise. "Four years from now," says Mr. Silverman, " we'll be the new hot spot for off-off-Broadway."


Real Estate Theaters find garment district a good fit As Times Square prices rise too high, groups take spaces just to the south By Lisa Fickenscher Published on December 09, 2002 Dave McCracken was determined to plant his new acting studios in the heart of the theater district. "I wanted the glitter of Times Square on my company," he says. But the bright lights of Broadway turned out to be too expensive for Mr. McCracken and his business partner, Randall O'Neill. Their venture, Dionysus Theatre Complex Inc., is a group of 21 rehearsal rooms available for rent. They turned, instead, to the garment district, where an increasing number of small theater companies and rehearsal studios are beginning to sprout. A swath of city blocks from West 35th to West 41st streets, and from Sixth to Ninth avenues, this neighborhood has attracted no fewer than eight theater companies, seven within the past six months. Some of these theater companies are startups; others are refugees from different parts of the city, including Times Square, which have become too expensive. Over the past several years, Times Square has evolved into an office district, displacing some small tenants and limiting the options for those that might otherwise have moved in. Dot-com vacancies The garment district's vacant warehouses, garment factories and former dot-com spaces are drawing theater people slightly southward. Many of the dot-coms that moved in during the tech bubble no longer exist. And the garment industry continues to shrink-it represents only 41% of the employment in the area. Theater entrepreneurs, seeking low costs, high ceilings and proximity to the big leagues, are snapping up the vacant spaces. Dionysus is taking over 15,000 square feet that used to belong to Zar Industries, a defunct button manufacturer. Dionysus signed a 10-year lease in July for $17 a square foot at 519 Eighth Ave., at West 36th Street, and will open in March 2003. The Kaufman Organization owns the building. Bargain hunters are finding deals in the garment district for as little as $13 to $25 a square foot, according to Christel Engel, a senior director at real estate brokerage GVA Williams, which represented Mr. McCracken. Comparable space near Times Square goes for between $28 and $40 a square foot. The Zipper Theater, a 240-seat theater at 336 W. 37th St., was the first to discover the lower rents in the garment district, 17 months ago. But this past summer, the Abingdon Theatre Co., the Workshop Theater Co., and the Barrow Group, an acting school and theater company, signed 10-year leases at 312 W. 36th St., a former Consolidated Edison transformer station. Close to tourists At 344 W. 36th St., the Folksbiene Yiddish Theatre signed a lease for a 199-seat theater in June. The Revelation Theatre, at 334 W. 39th St., is opening in March. And the Genesius Guild moved to 520 Eighth Ave. in August. Leslie Smith, founder of Revelation, says the decision to be in the garment district was simple. "It's more affordable, and it's close to a major tourist space." More theater companies are eyeing the neighborhood. Ms. Engel says she is showing space to at least two other theater rehearsal companies. There are plenty of buildings available. As of October, the vacancy rate was 13.3%, down from 15.6% a year before, according brokerage Colliers ABR Inc. Colliers' definition of the garment district is West 31st to West 41st streets from Fifth Avenue to the Hudson River. One concern that may dampen enthusiasm for the area is safety. The garment district becomes somewhat desolate at night. The Barrow Group is beefing up security after someone on the street threatened an employee, says Rick Silverman, the group's comptroller. But the pioneer theaters are convinced of the area's long-term promise. "Four years from now," says Mr. Silverman, " we'll be the new hot spot for off-off-Broadway." Copyright 2002, Crain Communications, Inc