The City of Chicago's ebay auction of cultural artifacts is over, but the bidding is just beginning for the Mercury Theatre. The 300-seat commercial house is the next item going up for bids in a court-ordered auction that will dissolve the long business partnership between producer and publican Michael Cullen and his one-time mentor, restaurateur Joe Carlucci. The auction date is March 8 at 2 p.m. at the Mercury, and the minimum bid is $1.975 million. Terms are cash.

The Mercury Theatre is not the only business at stake in the proceedings. The building at 3741-47 N. Southport also houses Cullen's Bar & Grill adjoining the Mercury to the south (they share a pass-through lobby connection) and Carlucci's Strega Nona restaurant to the north. Cullen and Carlucci bought and developed the parcel in 1994, with the Mercury opening its doors in 1996. For a period of years prior to their partnership, Cullen (then between theatres) had worked as a manager for Carlucci, learning the bar and restaurant business.

On Dec. 23, the property was placed in the hands of a receiver appointed by the Circuit Court of Cook County, an indication that the break-up between Carlucci and Cullen has not been amicable, or at very least involves unresolved issues. The court receiver in turn retained the Oak Brook-based firm of Inland Real Estate Auctions, Inc. to plan and execute the sale of the property. The court also set the minimum acceptable sale price, according to Inland senior vice-president Frank Diliberto. He describes the bid as "aggressive," but says the prime location of the property and the many improvements already made to it justify the price.

Indeed, Inland's initial press release announcing the sale said that over $3 million in improvements have been made to the building, originally opened in 1920 as a nickelodeon. The central, two-story portion of the venue now houses the Mercury Theatre, with the flanking bar and restaurant occupying one-story portions of the structure.

Since 1996, the Mercury Theatre has been home to several major commercial hits produced by Cullen or others, among them The Last Night of Ballyhoo, Over the Tavern, Over the River and Through the Woods, Pope Joan and His Way: A Tribute to the Man and His Music. The current attraction, The Complete Works of William Shakespeare (Abridged), recently was extended through Jan. 29.

Many real estate auctions solicit sealed bids, but Diliberto says the Mercury sale will be an open outcry event with bids shouted out to the auctioneer or indicated by a signal. Open outcry action typically is fast, and the entire sale should be over in a matter of minutes. Potential bidders will have three opportunities to inspect the property, Feb. 2, 9 and 16 between 8:30 a.m. and 10:30 a.m. (so as not to interfere with lunchtime business). The inspections will be followed by brief seminars to inform potential bidders of auction procedures. Among other qualifications, registered bidders each must bring a $100,000 cashier's check to the auction, made out to Inland Real Estate. In the end, only the winning bidder's check will be deposited. Those interested in attending one of the inspections should call Inland at 630/990-5353.

Diliberto reports that interest in the choice property is running high. He won't say how many inquiries he's received, or who they are from, but Michael Cullen himself has said (as reported in the Chicago Tribune) that he might bid on the property. Indeed, Cullen would appear to have the most at stake, since he operates two of the parcel's three existing businesses. While the Mercury, Cullen's and Strega Nona all are profitable tenants that might appeal to a passive, buy-and-hold landlord, the mere fact of their success doesn't guarantee their continued occupancy. At least two of the businesses are on flexible leases, meaning a new owner could choose to evict them and rent to other tenants or completely redevelop the venue. Cullen's Bar & Grill conceivably could relocate to quarters elsewhere, but it's pretty darn tough to move a playhouse.

Neither Cullen nor Joe Carlucci returned calls in time to include their comments in this story.