A historic Denver landmark, the El Jebel Shrine building at 1770 Sherman Street, is set to be sold at auction following a court order. The decision comes after the property entered foreclosure and accumulated significant unpaid property taxes and deferred maintenance costs.
Denver District Court Judge A. Bruce Jones approved the receiver's plan to sell the early 20th-century building and its adjacent parking lot, marking a critical turning point for the financially distressed property.
Key Takeaways
- The historic El Jebel Shrine building in Denver has been court-ordered for auction.
- The property is in foreclosure, with unpaid property taxes dating back to 2022.
- A court-appointed receiver determined a sale was necessary due to a lack of funds for taxes and required maintenance.
- The sale includes both the 46,000-square-foot building and a valuable adjacent parking lot eyed by developers.
- Historic Denver holds a conservation easement protecting the building's interior and exterior features.
Court Orders Sale Amid Mounting Financial Pressure
The path to auction began when the property entered foreclosure in the spring of 2024. In May of that year, Denver-based firm Cordes & Co. was appointed as a receiver to oversee the building at the request of a lender. A receiver is a neutral third party appointed by a court to manage a property that is the subject of a legal dispute, often in foreclosure cases.
By July, Cordes & Co. concluded that selling the property was the only viable option. In a court filing, the receiver reported that "significant sums" in property taxes were owed, with delinquencies stretching back to 2022. This financial burden was compounded by pressing maintenance issues.
The Role of a Conservation Easement
Historic Denver, a local preservation nonprofit, holds a conservation easement on the El Jebel Shrine. This legal agreement protects the building's historical character by placing restrictions on modifications to both its exterior and interior. The organization had requested that the owner address deferred maintenance identified in past inspections, adding to the financial obligations.
The receiver's filing stated, "The Receiver has no means of paying for either of these very significant expenses." This lack of operating capital to cover back taxes and essential repairs prompted the formal request for an auction.
Ownership and Foreclosure Details
Since 2016, the El Jebel Shrine building has been owned by a set of LLCs managed by Robert Lubin, an attorney based in California. The entities acquired the property for $12.4 million. According to previous statements by Lubin, the purchase was financed by investors through the federal EB-5 program, which allows foreign nationals to obtain green cards by investing in U.S. projects that create jobs.
The property's financial situation deteriorated, leading to the current foreclosure. Fairbridge Strategic Capital, which provided an $8.1 million loan to the ownership in January 2023, is a key lender in the proceedings.
Timeline of Financial Distress
- 2016: Lubin's LLCs purchase the building for $12.4 million.
- 2022: Property tax payments become delinquent.
- Jan 2023: Fairbridge Strategic Capital issues an $8.1 million loan.
- Spring 2024: Foreclosure proceedings begin.
- May 2024: Cordes & Co. is appointed as receiver.
- Sept 2024: A judge approves the receiver's plan to auction the property.
Attorneys for Lubin's companies initially resisted the auction, requesting time to negotiate a settlement with Fairbridge. However, after the proposed negotiation period passed without a resolution, Judge Jones approved the receiver's auction plan on September 19.
Future of the Historic Property
The El Jebel Shrine building is an architecturally significant structure in Denver. Built in 1906 by the Shriners, a fraternal organization, the five-story, 46,000-square-foot building served as their meeting hall for decades. Its status as a city landmark underscores its importance to Denver's history.
Currently, the building is leased by Non Plus Ultra for use as an event venue. However, its utility has been hampered by an inoperable elevator, which has limited the company's ability to fully use the space. In a separate legal matter, Non Plus Ultra is suing the city of Denver over the denial of a liquor license for the venue.
The conservation easement held by Historic Denver will be a crucial factor for any new owner. It ensures that the unique architectural elements of the building are preserved, influencing any future renovation or redevelopment plans.
The Undeveloped Parking Lot
A significant part of the property's value lies in its large adjacent parking lot to the south. Over the past two decades, this parcel has attracted interest from numerous developers for high-rise projects. Notably, Donald Trump considered the site for a development project years before his presidency.
Despite several ambitious proposals, no construction has ever commenced on the lot. The sale of the combined property could finally unlock its development potential, though any new project would likely need to be designed in harmony with the historic Shrine building it accompanies.
Rick Egitto of CRE Solutions is marketing the property for the auction. As of now, a specific date for the auction has not been announced. The sale will be conducted through the online commercial real estate platform Crexi.
