Denver’s historic Jewel Theater, located at 1912 S. Broadway, has successfully exited bankruptcy, marking a significant step forward for the renovated venue and its owners. The theater, a South Broadway landmark, filed for Chapter 11 protection in January to stave off foreclosure, but has now reached a resolution with its lender, MidWestOne Bank. This news offers a positive outlook for the future of entertainment options in the vibrant Broadway corridor.
The legal proceedings stemmed from challenges navigating occupancy-related delays with the City of Denver, requiring additional capital to move forward. Sonquist LLC, the entity managing the Jewel Theater, spearheaded by real estate attorney Doug Norberg and business partner Paul Yaft, took the necessary steps to preserve the property and secure its long-term viability. The resolution, finalized February 6th, ensures the Jewel Theater will continue to be a part of Denver’s cultural landscape.
According to records, MidWestOne Bank withdrew its foreclosure effort on February 3rd. The bank acquired the building’s $2.3 million loan when it acquired Bank of Denver in 2024. Norberg and Yaft previously explained they strategically skipped mortgage payments to allocate funds towards a city-mandated sprinkler system installation, a crucial step in bringing the building up to code.
“All issues and litigation have been fully resolved,” Norberg and Yaft stated. “On the Jewel, we were navigating occupancy-related delays with the City that required additional time and capital and we took the steps we needed to preserve the property and create runway.”
A History of Transformation for the South Broadway Venue
The Jewel Theater boasts a rich and varied history. Originally constructed as a cinema in 1926, the building underwent several transformations over the decades. By the 1970s, it operated as an adult film theater, before being repurposed as a climbing gym in the 1990s, which remained in operation for 25 years until early 2018. Norberg and Yaft purchased the property in December 2018 for $1.6 million, with the intention of restoring the theater to its former glory.
Looking Ahead: Lease Proposals and Future Operations
The owners are optimistic about the future, noting strong interest in the property. “Interest in the property has been strong, and we are actively entertaining lease proposals from operators who recognize its uniqueness, visibility and viability,” Norberg and Yaft said. The Jewel Theater’s location on South Broadway, a bustling entertainment district, positions it well for success. The area is known for its eclectic mix of restaurants, bars, and music venues, making it a popular destination for locals and tourists alike.
The successful resolution of the bankruptcy proceedings allows Sonquist LLC to focus on securing a tenant and revitalizing the Jewel Theater as a performance and entertainment space. The future of the venue remains open, but the owners are confident in its potential to become a thriving cultural hub once again. The theater’s unique architectural features and prime location are expected to attract a diverse range of potential operators.
As the Jewel Theater moves forward, the community will be watching to see what new chapter unfolds for this historic Denver landmark. The owners’ commitment to preserving the property and finding the right operator suggests a bright future for this South Broadway institution.
What kind of entertainment do you hope to see return to the Jewel Theater? Share your thoughts in the comments below.
