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Designed by famed architect Eugene De Rosa, the venue opened in 1927 as the Gallo Opera House (soon revised to Gallo Theatre), named for its owner, Fortune Gallo. Beginning with a very large-scale production of La bohème which closed after three weeks, the Gallo was met with a succession of failed attempts to draw an audience, and was lost to foreclosure after only two years. It later reopened under new ownership as The New Yorker, but continued failing to attract sufficient crowds. It changed hands in the early 1930s, then in 1937 it became the WPA Federal Music Project of New York City's Federal Music Theatre/Theatre of Music, then it became the New Yorker Theatre in 1939, housing an all-black version of The Swing Mikado, originally from Chicago, for two months, when the production moved to the 44th Street Theatre to finish its run. The New Yorker Theatre saw its final production, Medicine Show, end in May 1940, following which the building remained vacant for three years.