Debt-Ridden Source Theatre Closes, Plans to Sell Building

"It's certainly a vibrant real estate market, and while we definitely want to encourage private investments, we nevertheless want to make certain that we're not losing a small, affordable performance space," McGaw said. "It's in the public interest to determine if there's a viable future for the Source building and the organization as we've known them. Like affordable housing units, once lost it may be lost forever."

Anne Corbett, executive director of Cultural Development Corp., a nonprofit group that aids arts organizations, said the arts community wanted "the historical use of that property to continue, regardless of who the owner-operator was."

Those who have watched Source's travails were not surprised by the decision but lamented the loss of Source in particular and theater space in general.

In its active years, Source produced five plays a season. It created the annual Washington Theatre Festival, which has developed more than 700 plays since 1981. For 20 years, a 10-Minute Play Competition was part of the event. That creativity earned Source a Mayor's Arts Award.

Over the years, Source was nominated for 30 Helen Hayes Awards.

Recently, it lent its space to other arts organizations, including several theater companies.

"It was a place where a lot of young people could have their first professional experience, from actors to playwrights to designers," said Morey Epstein, executive director of institutional development at Studio Theatre, an arts anchor along the 14th Street corridor.

Victor Shargai, chairman of the Helen Hayes Awards board, said Source was an important theater space and an important part of the community.

"Fourteenth Street is the 14th Street we know now because of the theaters," he said. "It's the 14th Street that has art galleries, stores and restaurants that you can't get in without a reservation."

Curt Large, an executive with Bedrock, which operates Buffalo Billiards on Dupont Circle and at 11 other locations, declined to discuss the selling price. The sale will close shortly, he said.

The two-story building has 8,000 square feet. It is assessed at $1.7 million.

The company would respect the history of the neighborhood, as well as fit into its contemporary flavor, according to Large. The Standard name is taken from an old business at the location and the decor will celebrate the street's past life as an auto row.

O'Brien said she didn't have a problem with the theater space becoming a restaurant. "Those can be warm, neighborhood places," she said.

O'Brien said that proceeds from the sale would pay off the debts and finance a special arts fund. She said the purpose of the fund would be to "truly impact theater in Washington and embody the values of the people who founded and supported Source for this last quarter-century."