The Jewel Theater in Denver Exits Bankruptcy, Resolves Issues with Lender
The owner of the newly renovated Jewel Theater along South Broadway, Sonquist LLC, has successfully exited bankruptcy on Feb. 6, resolving issues with its lender, MidWestOne Bank.
Sonquist LLC, managed by real estate attorney Doug Norberg and business partner Paul Yaft, filed for Chapter 11 on Jan. 23 to prevent foreclosure by MidWestOne Bank, which had acquired the building’s $2.3 million loan in 2024.
Records show that MidWestOne Bank withdrew its foreclosure effort on Feb. 3, indicating that all issues and litigation have been fully resolved.
In a statement, Norberg and Yaft mentioned, “On the Jewel, we were navigating occupancy-related delays with the City that required additional time and capital, and we took the steps needed to preserve the property and create runway.”
The historic Jewel Theater, built in 1926 as a cinema, has seen various transformations over the years. From showing pornographic films in the 1970s to housing a climbing gym in the 1990s, the theater has now been renovated by Norberg and Yaft to its former glory.
Interest in the property has been strong, with the owners actively considering lease proposals from operators who recognize its uniqueness, visibility, and viability.
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