The future of the Brooklyn Mirage is coming into focus.
Five Holdings acquired the entertainment complex at 140 Stewart Avenue in East Williamsburg for $110 million, the Commercial Observer reported. Five Holdings is the parent company of nightlife brand Pacha — known for its famed Ibiza nightclub — and will set up shop in Brooklyn.
The acquisition by the Dubai-based holding company was first reported by Traded.
Pacha’s deal is the latest twist in the fate of a venue as known for its storied live music scene as its propensity to harbor drug use, aggressive security and even death; a Gothamist investigation found three visitors died of drug overdoses between 2018 and mid-2022.
The venue closed for renovations last year, setting a May 1 opening date and a summer full of shows. But the venue failed to meet its inspection deadline and the Department of Buildings yanked its temporary occupancy certificate, Brooklyn Paper reported; an agency spokesperson declared the venue unsafe.Â
Avant Gardner’s parent company filed for bankruptcy in early August, reporting $153.3 million in funded debt obligations, according to Bloomberg. The chief executive officer — himself a DJ — blamed financial troubles on the loss of the Mirage and aggressive lenders. The company claimed it was working with DOB on a remediation plan.Â
However, ownership in October filed for a demolition permit for at least part of the venue. The application was for a full demolition of 32,000 square feet; the overall complex is roughly 80,000 square feet and the estimated cost of razing is $1.5 million.
Shortly after the permit was filed, private equity firm and lender Axar Capital Management reached a deal to buy the venue for $110 million with an eye towards reopening in 2026. As the calendar flipped, however, so did Axar, which agreed instead to have the property sold to Five Holdings for the same price.
It’s unclear when Pacha’s slice of European nightlife will hit Brooklyn’s waters. Representatives for the buyer and seller did not respond to the Observer’s requests for comment.Â
— Holden Walter-Warner
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