South Broadway theater in Denver exits bankruptcy, foreclosure

The Jewel Theater in Denver Exits Bankruptcy

The owner of the Jewel Theater along South Broadway has successfully emerged from bankruptcy, mending their relationship with the lender.

Sonquist LLC, the entity that owns the historic Jewel Theater located at 1912 S. Broadway, filed for Chapter 11 on Jan. 23 to prevent foreclosure by its lender, MidWestOne Bank. The bank, which inherited the $2.3 million loan from Bank of Denver in 2024, withdrew its foreclosure efforts on Feb. 3, marking a positive turn of events for the theater.

Real estate attorney Doug Norberg and business partner Paul Yaft, the minds behind Sonquist LLC, expressed relief at the resolution of all issues and litigation. They explained that challenges with occupancy delays and city regulations necessitated additional time and capital investment, prompting their decision to seek bankruptcy protection to safeguard the property.

Originally constructed as a cinema in 1926, the Jewel Theater underwent various transformations over the years, including a period screening adult films in the 1970s and housing a climbing gym in the 1990s. Norberg and Yaft purchased the building in 2018 with the intention of restoring it to its former grandeur.

Despite the setbacks, interest in the Jewel Theater remains high, with the owners actively considering lease proposals from operators who recognize its unique characteristics and potential.