The drama surrounding Flushing’s RKO Keith’s Theatre took a surprising twist when reports of the landmarked building’s sale hit The Real Deal online.

Current owner Boymelgreen Developers reportedly agreed to sell a $20 million note from Doral Bank, which secures the theater, to Venator Capital.

The purchase of the note, which was leveraged by Boymelgreen’s ownership of the property, would lead to a “friendly foreclosure,” ultimately handing over the deed to Venator.

Principal of Venator Capital, Sam Suzuki, reportedly said the note was purchased below its value, but would not give the exact price.

Boymelgreen paid $15 million for the property in 2002, buying it from firebrand developer Tommy Huang.

The Keith’s, despite having suffered extensive damage and decay, had a large portion of its interior, namely its lobby, recognized by the Landmarks Preservation Committee, which prevents any mass overhaul.

Boymelgreen butt heads with Community Board 7 two years ago when it deviated from City-approved plans that would have allowed a mix of residential, commercial, community and parking space.

Facing financial difficulties, the developer borrowed $20 million from Doral against the property’s value, which at one point was assessed at over $30 million.

An inability to sell dropped its list price to $24 million this spring.

Reach Reporter Joseph Orovic at jorovic@queenstribune.com, or (718) 357-7400, Ext. 127.